I have just setup a new Windows Server 2008 R2 installation using the new boot from VHD functionality in Windows 7 (but that’s another story). In my case I just moved it to a different physical drive before changing the drive letter below.
After reading the recommendations for booting from a VHD on TechNet it turns out that putting the page file on a physical drive rather than the virtual is required for performance reasons. UPDATE: I was just a little too hasty posting this entry.