Backup the database on the production server.
Copy the backup to the Virtual Server image and restore the databse in SQL Management Studio (assuming that SQL Server is installed on the Virtual Server).
Then in the Virtual Server image open the CRM Deployment Manager and on the Organisations node right-click and select import organisation. The next dialog box will ask you to select the organisation database, choose the database that you just restored and then follow the instructions and you will have a copy of your production server.
Since you've already installed CRM 4 in your Virtual Server you will already have an organisation. If this organisation has the same name as your production server you may have problems.
Also, whether the existing organisation remains available depends on your edition. Unless it is Enterprise the existing organisation will become disabled once you've succesfully imported your production one.
Hope this helps.
