How do I convert a .vhd disk image to work with VMWare Fusion 2?

Alternatively, if you are using Windows 7, you can mount the .vhd file in the drive manager, then use that mounted drive as a physical drive in vmware.

The VMware Virtual Machine Importer can convert several VM formats (and physical disks) to a VMware disk. This includes the VHD format used by VirtualPC.

Check the doc here for the supported formats.

This isn't an answer so much as it is precautionary...

I've launched those MS provided VM's with Microsoft's Virtual PC, then used VMware Converter to convert them as suggested by others.

It ain't pretty. Or at least, wasn't 2 years ago when I last tried. Among other things, I lost the windows license...