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The following command will create a resizing 10g image in your current directory:
# /usr/bin/qemu-img create -f qcow2 vdisk.img 10G
I struggled on our LTSP server to boot from CDROM, but found that I could boot easily from the downloaded IMG files (from Microsoft).
Boot from first CD image: $ kvm -no-acpi -m 512 -cdrom /home/username/vdisks/w2k3/iso/X13-04874.img -boot d -hda w2k3.img -k en-gb -smp 2 Boot from second CD image: $ kvm -no-acpi -m 512 -cdrom /home/username/vdisks/w2k3/iso/X13-04795.img -boot d -hda w2k3.img -k en-gb -smp 2