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Boot to virtual hard drive?

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linux-howto

http://forums.fedoraforum.org – I recently read a post on another forum where I could install a dual boot system with Win7 and Win8, where Win7 was on the physical hard drive, and Win8 was a virtual hard drive (file residing on the physical drive.) Is something like this possible with Linux (F17), where I can create a virtual Linux drive and when I reboot my machine, be able to either boot to Win7 or to Linux? (HowTos)