Cannot format a FAT16 virtual hard disk to NTFS in a Windows NT 4.0 Terminal Server Edition guest operating system (831505)

WORKAROUND

1. Install a virtual machine that supports NTFS (such as Microsoft Windows XP, Windows 2000, or Windows NT 4.0), and then shut down the virtual machine.
2. In the Virtual PC Console, click the virtual machine that supports NTFS, and then click Settings.
3. In the left pane, click Hard Disk 2, and then in the right pane, click Virtual hard disk file.
4. Click Browse, locate the virtual hard disk (.vhd) that you want to convert to NTFS, select the virtual hard disk that you want to convert, click Open, and then click OK to save the changes.
5. Start the virtual machine that supports NTFS, open My Computer, right-click the virtual hard disk that you want to format (it appears as Local Disk D:), and then click Format.
6. In the Format Local Disk dialog box, click NTFS in the File system box, and then click Start.
   
   Warning You will lose all the data on the virtual hard disk.
7. After the format has completed, click Turn off and save changes on the virtual machine that supports NTFS, and then click to select the Commit changes to the virtual hard disk check box.
8. In the Virtual PC Console, click the virtual machine that supports NTFS, and then click Settings.
9. In the left pane, click Hard Disk 2 (the virtual disk that you converted to NTFS), click None in the right pane, and then click OK to save the changes.
10. Restart the installation of Windows NT Server 4.0 Terminal Server Edition to the NTFS virtual hard disk.