As Windows 8 uses Hyper-V rather than Virtual PC there are some issues with running the Compact 7 VPC. I can get the VPC to boot and download a targeted image for Visual Studio/Platform Builder. The image starts to load after download but then fails with green screen at top:

image

I have previously come across this issue when running a Win 7 /VS 2008/Compact 7 PB image as a VM  on a Windows 2008 system with Hyper-V where I ran the C7 VM as another Hyper-V VM.  Others report the same issue.

It seems that a separate BSP is required for C7 VPC in this context using a different NIC and Display driver.
Forums indicate that Microsoft has/had no intention of supporting this.

So C7 VPC under Windows 8 is fail!

Oliver Bloch does though discuss a setup for C7 VPC development under Hyper-V where the development system is a Win 7 VM with VPC 2007 installed to that image. You can’t use the XP mode VPC with a VM as virtualization is not supported in VMs.
http://blogs.msdn.com/b/obloch/archive/2010/08/23/how-to-setup-a-virtual-machine-to-run-windows-embedded-compact-7.aspx