Yes, you can use Windows 7 Professional to setup a bootable VHD environment, however Windows 7 Professional cannot be installed into a VHD. Only Windows 7 Ultimate and Enterprise or Windows Server 2008 R2 (any version) can be installed into a VHD.
Yes. Portlock Leap Frog is aware of the various boot environments. The new booting virtual disk will be stored on a supported drive and the correct boot loader will be updated with the new boot information.
Convert your volume(s) to NTFS. Open Command Prompt. Click Start, point to All Programs, point to Accessories, and click Command Prompt. In the command prompt window, type: convert drive_letter: /fs:ntfs. Example "convert D: /fs:ntfs"