Actually copy and paste the way you want does not work. You have to clone your hard drive. You can use Norton Ghost or EASEUS Disk Copy. Good luck
Man now that we saw in the section of W7, And you want to boot XP Mode. Actually I do not know if that's possible. You would have to try it.
What exactly are you trying to do? Run the virtualized installation of XP inside Windows 7, but from a hard drive instead of the .vhd? Or do you want to run Windows XP directly on the computer?
i guess you can just copy the C drive from XPMode to a real drive partition, but then it shouldnt load because for some stuff, Virtual PC runs as a client connected to the host physical machine (sharing services, devices, usb etc..) so maybe you will need to reinstall XP over it to repair all broken things or maybe just putting back a default registry hive, don't really know i never tried logically, if it doesnt work it should be only a matter of registry because files are the same