So, from what I've read and seen with DriveImage XML Interface as long as the Storage Device is accessible then it can be restored from it!
Yes I agree. It reffered to WoodyZ suggestion regarding a 2nd virtual DVD
The problem is for now - I can not make the USB drive accessible to the boot environment
I have another VM, installed with XP, where the USB HD is visible and accessible.
But with the new machine I am trying to create there is a problem.
The first time I connect the disk to the VM there was a BSOD on the host machine
Second time is didnt happen.
But, when i connected the VM to the disk - the host machine didn't see it anymore, as expected, but it still was not recognized in the VM