Well, apart from the exact same issue (how to copy the existing f/s into a VM), I suppose that might be a good thing to do.

But it will screw up the software licences for WinXP (requires a telephone call to MS) and also for Adobe Photoshop on the same disk (requires a telephone call to Adobe, or perhaps just taking care to deregister before cloning, then reregister).

I wonder if the DVD copy utilities will still work from within the VM? Gotta try it, I guess.