We use this approach too, it works pretty well. I’ve been thinking abit about VPC images and Tfs Build lately. I wonder; would it be possible to build parts of a VPC image during the build? IE; to deploy latest and greatest code etc. 

Link to Mattias talks about SharePoint, BizTalk, .NET, TFS, etc. : Steps for mail-enabling your development VPC

I’ll have to update my Rosario VPC so I’ll better use this approach. Hate it when large downloads “die”. 

Link to Brian Keller: Technical Evangelist for Team System : A More Reliable and Faster Download Experience for Rosario / VS08 VPC’s

Link to Martin Woodward: Getting Ubuntu 7.10 working in Microsoft Virtual PC 2007