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I currently have a vhd on my machine that I boot into (win 7 enterprise). I'm being told that I need to Bitlocker my 'machine' and want to know if I can run Bitlocker within the context of the VHD... but NOT in the physical hard drive.

'Turn on Bitlocker' is an option in the context menu.

I DO NOT want to encrypt the host drive, just the contents of the VHD. Is this possible?

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If you encrypt the host drive, you by default encrypt the entire drive, based on what you say you were told to do that exactly what you should do. You could try to enable Bitlocker on the virtual machien itself. – Ramhound Dec 5 '11 at 16:20
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