Disk2vhd is a utility from Sysinternals that creates VHD (Virtual Hard Disk - Microsoft's Virtual Machine disk format) versions of physical disks for use in Microsoft Virtual PC or Microsoft Hyper-V virtual machines (VMs).
The difference between disk2vhd and other physical-to-virtual tools is that you can run Disk2vhd on a system that’s online.
Disk2vhd uses Windows' Volume Snapshot capability, introduced in windows-xp, to create consistent point-in-time snapshots of the volumes you want to include in a conversion. You can even have Disk2vhd create the vhd on a local volume, even ones being converted (though performance is better when the VHD is on a disk different than ones being converted).
To use VHDs produced by Disk2vhd, create a VM with the desired characteristics and add the VHDs to the VM's configuration as IDE disks. On first boot, a VM booting a captured copy of Windows will detect the VM's hardware and automatically install drivers, if present in the image. If the required drivers are not present, install them via the virtual-pc or hyper-v integration components. You can also attach to VHDs using the windows-7 or windows-server-2008 R2 Disk Management or diskpart utilities.
Disk2VHD can be downloaded here