To install Windows Vista on a VPC the disk partition must be setup…there are some steps to follow to the installation working. When you get to the “Install Windows” screen, press Shift+F10 to open a command prompt. Type DISKPART at the prompt and use the following commands.
  • select disk 0
  • create partition primary
  • select volume 1
  • format fs=ntfs label="vista"
When the format is complete, type EXIT to leave the utility, reset the VPC, and start the installation again.  The VPC guy provides more indepth information as to why this process must be followed.
Quote from his blog "Windows Vista Beta 1 does not correctly identify the virtual hard disk when it is not partitioned.  To handle this you should start the installation, get to the hard disk partitioning page, partition and format your virtual hard disk, and then reboot the virtual machine.  The second time through Windows Vista Beta 1 will correctly identify the hard disk (now that it is partitioned)."
Note that Vista would not accept the key provided with the PDC Goods kit, I used ‘Q8WDJ-TR4KJ-X8WHM-GVGV3-H74C3’.
Once the installation is complete (will take as much as 4 hrs!), you can install the VPC extentions.