Ubuntu can be booted from a disk image(via Wubi), BeOS Personal is booted from a disk image by default, too. So my question is: Is it possible to use grub4dos(or standard grub or any other bootloaders) to boot a raw disk image of Windows XP (the file system is ntfs) which is created by dd? If it's possible, How to?
I initially thought it was not possible, since although the you could get the boot-loader to read NTOSLDR from the image, XP has no loopback support for loading itself further from the image. In Windows 7, support was added to load itself from VHD images.
However, a thread over at boot-land.net describes a utility BOOT_IMG.exe which seems to do something along the lines of what you are asking for. Caveat emptor; I have not tried this myself.