edited, based on from http://web.syr.edu/~mzunlu/installationprocedures.htm

Step 1:    Install Microsoft Virtual PC 2004

Step 2:    Install Linux operating system under Virtual PC

Step 1:    Install Microsoft Virtual PC 2004

1. Insert the installation CD into the CD drive.

   If the setup wizard does not start automatically, click Start, click Run, and then type D:\setup.exe, where D: is the letter of the CD drive.

2. When the Microsoft Virtual PC 2004 InstallShield Wizard appears, click Next.
3. In the License Agreement dialog box, read the agreement, click I accept the terms in the license agreement, and then click Next.
4. In the Customer Information dialog box, type a user name and organization, as appropriate; type the product key for Virtual PC; and then do one of the following:
   • To install Virtual PC for all users of the computer, click Anyone who uses this computer, and then click Next.
   • To install Virtual PC only for your use, click Only for me (username), and then click Next.
5. In the Ready to Install the Program dialog box, do one of the following:
   • To install Virtual PC to the default folder, C:\Program Files\Microsoft Virtual PC, click Install.
   • To install Virtual PC to a different location, click Change. In the Change Current Destination dialog box, browse to the location in which you want to install Virtual PC, click OK, and then click Install.
6. When the InstallShield Wizard Completed dialog box appears, click Finish.

Step 2:    Install Linux operating system under Virtual PC

1. Run MS Virtual PC.
2. Click New
3. On the wizard click Next
4. Select an option Create a Virtual Machine and then click Next.
5. Select a location and give a name for your virtual machine and then click Next.
6. On the menu select Other as an operating system and then click Next
7. Allocate RAM for the virtual machine using the options. Click Next.
8. For virtual hard disk select A new virtual hard disk option. Click Next.
9. Select a location and give a name for your virtual hard disk. Click Next.
10. Click Finish to complete the wizard.
11. On the Virtual PC Console click Start.
12. When the program starts and says Reboot and select proper Boot device insert the first CD-ROM of Red Hat Linux 9.0 to the CD drive and press Enter. (Alternatively using a DaemonTools mounted drive on the windowsxp hosting machine, g drive mapped to the RedHat FC5 DVD ISO, use the VPC's CD menu to choose g drive as the CD drive)
    
13. On the following installation screen, to select the first option only press Enter key. 
14. To skip media test select Skip.
15. On the following screen click Next.
16. Select the language and click Next.
17. Select the appropriate keyboard option for the system. Click Next.
18. Select the appropriate mouse option for the system. Click Next.
19. As an installation type choose Workstation or whatever you want. Click Next.
20. Select Automatically partition option. Click Next.
21. On the following warning screen select Yes.
22. Select the first option Remove all Linux partitions on this system.
23. On the following warning screen click Yes.
24. On the Boot loader configuration screen don't change anything and click Next.
25. On the Network configuration screen don't change anything and click Next.
26. On the Firewall configuration screen don't change anything and click Next.
27. On the Additional language support screen select whatever you desire and click Next.
28. On the Time zone selection screen choose your selection and click Next.
29. On the Set root password screen give a password for the root and click Next.
30. Select the first option Accept the current package list or the second one and then click Next.
31. To begin Linux installation click Next. After that point first CD-ROM takes about 2 hours, second one takes about  1 hour and the last one takes about 15 minutes to install it.
32. On the Boot diskette creation screen select one of the options you desire and click Next.
33. On the Graphical interface (X) configuration screen don't change anything. Only check the Skip X configuration box and then click Next.
34. The installation is complete. Click Exit.
35. Linux will restart and reboot the virtual machine and will not try to start the x-server.
36. After signing in as a root, issue the command redhat-config-xfree86. At this point you will see a graphical window where
    you can adjust settings. Don't adjust any settings and just press Ok. At this point you can use the Startx command.