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Add a second virtual machine from an existing one

Hi Experts.  I have a Windows 2008 R2 server running Hyper-V.  On that server is a virtual machine (Windows XP) that I do a lot of testing on.  I would like to create a second virtual machine without having to build it from scratch.  How can I "copy" the existing virtual machine and make a second one out of it?  Thanks for your help.
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Svet Paperov
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Thanks for the quick yet detailed response.  I copied the VHD file, renamed it slightly and created a new VM while attaching it to the renamed VHD file.  I went to download NewSID but found this message:

Note: NewSID has been retired and is no longer available for download. Please see Mark Russinovich’s blog post

After reading more about SID's, it doesn't appear that I need to modify the SID (which completely blows my mind).  

I realize that the news that it’s okay to have duplicate machine SIDs comes as a surprise to many, especially since changing SIDs on imaged systems has been a fundamental principle of image deployment since Windows NT’s inception. This blog post debunks the myth with facts by first describing the machine SID, explaining how Windows uses SIDs, and then showing that - with one exception - Windows never exposes a machine SID outside its computer,

I'm starting up the new (imaged) VM now and will post back.
Can I use a AVHD (snap-shot of a VHD) as a VHD for another VM?
No, you can't. AVHD is linked to VHD. If you have snapshots you need to do export/import in order to create a copy.
There is also another method suitable for testing purposes: using differencing disk. You need to read the help in order to understand how it works.
Thanks for the help!

regards,
Aaron