Select your VHD drive, ignore the warning message, and click Next
At this point, Windows Setup will prompt you to choose the location to which you want to install Windows 8 and you can now select your VHD, which will be designated as Unallocated Space and be the size that you specified.
As you can see, I have selected my 50GB VHD. Keep in mind that when you select the VHD, you'll see a Warning message that says that Windows cannot be installed to this disk. Even though Windows Setup displays this warning message, you can ignore it as the procedure does indeed function correctly. In fact, the installation procedure will progress quite rapidly and restart several times as it completes the installation on the VHD - just like it would on a normal hard disk.
Credit: All images created by Greg Shultz for TechRepublic.
Greg Shultz is a freelance Technical Writer. Previously, he has worked as Documentation Specialist in the software industry, a Technical Support Specialist in educational industry, and a Technical Journalist in the computer publishing industry.