Moving VMs from VPC2007 to Windows Virtual PC? READ THIS FIRST!
Posted by essjae on October 23, 2009
As with all major changes in VPC, you MUST SHUT DOWN your VPC 2007 VMs before you try to migrate them to Windows Virtual PC.
If you don’t, you’ll get an error about the hibernated state not being compatible. You have 2 choices at this point, move the VM back and shut it down, or delete the saved state file from the VM (.vsv).