When you install Microsoft Virtual PC 2004, the Setup program creates a My Virtual Machines folder. This folder contains configuration files (.VMC), temporary files, and disk images. By default, this folder is located in the My Documents folder.
Access to the My Virtual Machines folder is integral to the performance of your Virtual PC virtual machines. There may be situations where you want to locate the My Virtual Machines folder somewhere other than the My Documents folder. For example, if your My Documents folder is redirected to a network share, the performance of your Virtual PC virtual machines may be adversely affected.
To change the location of the My Virtual Machines folder, create an environmental variable setting for Virtual PC on the host computer. To do so, follow these steps:
On the host computer, right-click My Computer, and then click Properties.
Click the Advanced tab, and then click Settings under Environmental Variables.
Under System variables, click New.
In the Variable Name box, type myvirtualmachines.
In the Variable Value box, type the path of the folder that you want to use.
Click OK two times, and then close the Computer Management window.
Important Consider security when you perform this task. Microsoft recommends that you locate this folder on an NTFS file system formatted drive, and in a folder that has restricted permissions configured.