Is it possible to create Macintosh Virtual Hard disk for Windows 7 Virtual PC? If Yes please provide the steps for the same.

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The implication is that you'll be running MacOS X on non-sanctioned hardware (albeit in a virtual environment), which is breaking the software licence agreement for OS X. – Randolph West Dec 25 '10 at 4:06
What are you trying to accomplish? – Stephen Jennings Dec 28 '10 at 4:48
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