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If you are using the latest version of windows 7, The first thing you have to do is to format and partition it, mount a Virtual Hard Disk, but how to do it, here is the step.by LeeTutor.

 open up Computer Management by typing COMPMGMT.MSC in the search dialog box at the bottom of the Start Menu and hit Ctrl-Shift-Enter to run as Administrator. Then in the Computer Management window that opens up, right click on Disk Management and choose Attach VHD.

     
Attach VHD in Computer Management

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In the dialog box that opens up, enter the path to the VHD and click OK
 

     
Attach VHD dialog box

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The drive will mount and display in Disk Management. You can easily distinguish that it is mounted VHD because it will be colored blue.
 

     
Disk Management

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To dismount, Right-Click the disk and select Detach VHD. Click OK to detach.
 

     
Detach VHD

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