The Microsoft SysInternals team released a new tool called Disk2vhd. Ben Armstrong talked about it yesterday.
You can run the tool on a XP SP2, Windows Server 2003 or higher machine to capture the physical disks as VHD files. VHD is the virtual hard disk used in Microsoft virtualisation. Think of it as a poor man’s P2V tool. It does not do any clever HAL or driver stuff – that must be done by you.