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The first thing you'll see when you start VPC 2007 is this screen. From here, click "New..." This brings up the Welcome screen.
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From here, click "Next"
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You'll see three options - since this How To is all about making a new Virtual PC quickly and painlessly, we're going to pick "Use default settings to create a virtual machine", and leave the other options alone (for now!).
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Now, you'll need to give your Virtual PC a name. In this case, I've decided to name my machine "Win 7 VS SQL 2008".
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Click Finish to open the settings screen.
Congratulations! You now have a Virtual PC! Woohoo for you! :)