Yes, it's possible.
Within diskpart, you can issue the following command to create a differencing file based on your master VHD (drive letters and filenames are just for example):
DISKPART> create vdisk file="D:\win7child1.vhd" parent="D:\win7master.vhd"
And no reason why you couldn't run that command multiple times to build a collection of child images:
DISKPART> create vdisk file="D:\win7child2.vhd" parent="D:\win7master.vhd"
DISKPART> create vdisk file="D:\win7child3.vhd" parent="D:\win7master.vhd"
And (just to illustrate that it can be done) you can create a child based on another child:
DISKPART> create vdisk file="D:\win7child3a.vhd" parent="D:\win7child3.vhd"
Once you've created all the child images you want, go into bcdedit and add them to new boot entries... and you're done!
HTH,
Mike Garrison
[email protected]