Is there a way to use a pre-existing image in Virtual PC 2007?

We have a user running a specialized application ( software long ago lost and is no longer available ) and she needs to be upgraded to XP Professional while still being able to use this older app. Is there a way to create a VM from her current WIN 2000 image without having to build it from the ground up? Given the fact that the needed application is no loger made and the original install discs are lost, the 'ground up' route won't work for us anyway. We are trying to avoid a 2 PC/KVM setup in her, already, small office. Thanks -- Any helpful ideas or comments are appreciated.