Q: Do I have to convert a dynamic virtual hard disk (VHD) to fixed before uploading to Windows Azure?
A: Windows Azure only supports fixed VHD files. However, there is no need to manually convert a dynamic VHD to fixed when uploading to Windows Azure using Windows PowerShell.
The Add-AzureVhd cmdlet will automatically perform the conversion to a fixed VHD. Additionally only blocks with data are actually sent to Windows Azure minimizing the amount of data sent and speeding up the actual transfer.