Earlier this week I wanted to install the new Windows 8 Consumer Preview on my machine. I already had the Windows 8 Developer Preview installed on a VHD - I believe I get a better performance out of the system than using virtualization software. So at first I tried to launch the installation from within Windows 8 Developer Preview, but I failed.
I then went to Scott Hanselman's blog post on installing Windows 8 on VHD, but he also ducked the topic by simply writing "Updating from Developer Preview? Delete and start over!". The steps he then describes to install the new version (delete the VHD, remove the boot entry, setup a new VHD, configure the system to boot from the VHD, install) are very useful and easy to follow, however I would like to provide an alternative approach which I found to be even easier. This method does not provide an approach to upgrade the system, but it does not require any configuration regarding the system boot at all, given that your system already boots from a Windows 8VHD.