Since Windows 7 and Server 2008 R2, it is possible to boot from a VHD (Virtual Hard Disk) file.
Note that you can only boot a VHD which has been created using Windows 7 or 2008 R2 or later, and you must configure the boot loader from an active installation of Win7 or 2008 R2. You can't use Virtual PC VHDs, only Hyper-V or raw VHDs .
See the technet article
It is not the same as a restore of a VHD to a physical server, which seems to be impossible, but you would be up and running .
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