but the given scenario is about booting from Win7DVD (as much as I understood).
All my efforts to load a vhd "persistent", and boot XP from it failed.
Well, that was just an example.
Why don't you just try using wimb's tool, which will automate most of the steps and provide you with a working XP in a .vhd?
Once you have some success with it, you can go in depth in the related docs and introduce your own changes, etc,. etc.
Admittedly (by me), the nice tool by wimb and relative posts/docs are affected by featuritis and everything and the contrary of everything can be fonund in them, but with some patience and doing a few experiments it is still easier to get meanignful info from them than from a few tens of posts scatered all around the board.
Alternatively, start from scratch, following this one:
http://reboot.pro/to...be-for-you-too/
Wonko