Creating a Windows Virtual PC image from a Physical machine
Solution 1:
Have a look at the Sysinternals utility Disk2vhd. Should do what you're after if I understand the question.
Solution 2:
This step-by-step article describes how to create a Microsoft Virtual PC virtual hard disk that is an identical copy of a physical hard disk by using a backup disk image file:
How to create a Virtual PC hard disk image by using a backup disk image file
if you're getting a BSOD because of the different hardware, just do a repair installation.