I did get the Boot to VHD image problem resolved! Sometime tomorrow afternoon I will have a post up with a location where you can grab the .VHD file as well as instructions on how to edit your boot up info with BCDEDIT. I will also post information on how to remove that entry from the boot menu to clean things up if you like.
In the meantime, if you want to check out some information on how to Boot to VHD and how to use BCDEDIT, I have some links below -
Video – Adam Bomb - TechNet Edge - Boot from VHD in Win7
Blog Series - TechNet Edge - Windows 7 Boot from VHD
Blog - Scott Hanselman - Less Virtual, More Machine - Windows 7 and the magic of Boot to VHD
Downloadable Demo - Demonstration: Windows 7 VHD Boot