The following steps detail creating a new VM:
Click New and then Virtual Machine. The first option is to name the VM; and, if you want to store the VM in a location other than the default location defined in the Hyper-V setup, you do so in this screen (see Figure 2).
The next step is to assign memory. You can also choose to use dynamic memory for the VM.
Memory configuration has a big impact on Hyper-V performance. With dynamic memory, VMs that require more memory are allocated memory resources from VMs that require less, such as those in an idle state. Smart paging is a feature of dynamic memory and works in very much the same manner as a page file on a physical disk: when memory runs low, memory resources are given to active applications. You can select dynamic memory when creating a VM; however, you may not get true performance gains unless you are running a lot of VMs at once.
The New Virtual Machine wizard then displays the Configure Networking screen. This is where you select the network adapter the VM will use. After you do so, the wizard walks you through connecting a virtual disk. The options are to create a new virtual disk, connect an existing one, or attach a virtual disk later.
Under Installation Options, you can choose to install an operating system from a boot image or disk, perform a network installation, or opt to install the OS later. In Figure 3, I am installing a virtual guest Windows Server 2012 as the operating system for the VM from an .iso image.
Click Next and then Finish to complete the VM setup. The new VM is displayed in Hyper-V Manager in an off state. Right-click the VM and click Start and then Connect to complete the guest OS install.