You'll select the Create VHD command from the Action menu
Setting up a VHD
With your System Image completed, you'll use the Disk Management tool to create the VHD on which you will install Windows 8. To launch Disk Management, click the Start button, type Disk Management in the Search box, and press [Enter] when Create and format hard disk partitions appears in the result pane. When Disk Management launches, pull down the Action menu and select the Create VHD command.
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