Here are the steps to install a virtualized version of Windows 7 using Microsoft's Virtual PC software.
First of all download Microsoft Virtual PC from the following link:
http://www.microsoft.com/downloads/details.aspx?FamilyId=28C97D22-6EB8-4A09-A7F7-F6C7A1F000B5&displaylang=enAfter installing virtual PC tool, do the following steps
(1)Click on New and follow the wizard to create a new virtual PC.
(2) Name your Virtual Machine such as Windows 7 Beta, set the location and click Next.
(3) Select Operating system Windows Vista from the dropdown field because Microsoft Virtual PC 2007 SP1 does not support Windows 7 and it is similar to Windows 7.
(4) By default 512MB ram and 65,536 MB Virtual Disk will be allocated. Adjust the RAM if necessary and follow the wizard and click Next.
(5) Select A new virtual hard disk --> specify the location where you want to install windows 7. Make sure that you have enough free space there. It is recommended that you should have enough free space at least 20 to 40 GB for the virtual hard disk
(6) Click "Finish" to finalize your Windows 7 virtual machine
Installing Windows 7 on Your Virtual Machine
(1)Select the virtual machine that you created for Windows 7 from the list of available machines -->Click Start.
(2)Insert Win 7 installation DVD.-->Click on CD –> Choose the "Use Physical Drive-->choose Capture ISO Image and select the Windows 7 beta 32 Bits ISO image. This will mount the ISO image as a DVD drive.
(3)Restart the virtual PC by choosing the "Reset" option from the "Action" menu.