Windows Server 2008 R2 contains an enhanced version of the WDS server. I will talk about some of the other enhancements in a later post – today I will touch on the VHD enhancements. WDS now supports the ability to deploy a VHD file to target computers and configure them to boot from it. Which VHD to use? You cannot just use any VHD – there are some restrictions. The VHD has to contain either Windows Server 2008 R2 or Windows 7 Enterprise or Ultimate.