Step 4: Install you operating system
To install your operating system go to the Virtual PC Console and and double click the VM you just created. Once its started click on CD menu at the top of the machine. Then if you have the .iso file of your Operating System click on Capture ISO Image or if you just have the CD click on Use Physical Drive. Then click on Action menu, then Reset. After this you just have to install your operating system as you normally would in any other computer. You will need to look up a guide for installing linux though.