http://www.windowsazure.com/en-us/manage/windows/how-to-guides/custom-create-a-vm/
You can create a custom virtual machine by providing advanced options, such as size, connected resources, DNS name, and network connection. You must use this option if you want to connect virtual machines or if you want to use a custom image to create the machine.
Before you create a virtual machine, you should decide how it will be used. If you have a need for only one virtual machine in your application, you choose to create a stand-alone virtual machine. If you need multiple virtual machines in the same cloud service that can communicate with each other and act as a load-balanced application, you choose to connect the new virtual machine to an existing virtual machine.
This is GUI based not PowerShell.
Windows Azure IaaS – Upload a custom built VM template.
The steps in summary are as follows:
1- Create your VM using Windows 2008 Hyper-v Manager
2- Prepare your VM to be used as a template (Generalize the VM aka sysprep)
3- Create and register a management certificate to be used to connect remotely to your Azure subscription
4- Connect and upload your VM to windows Azure
Third: Create and register a management certificate to be used to connect remotely to your Azure subscription
In order to be able to manage your Windows Azure subscription in general and more specifically any administration work that will require you to communicate with windows Azure remotely you will need to use a certificate installed on the machines you are using for the communication. That certificate should be added to your management certificate in your Windows Azure settings so it trusts the machines you will use to manage your account.
The management certificates enable client access to Windows Azure resources when using the Windows Azure SDK tools, the Windows Azure Tools for Microsoft Visual Studio, or the Windows Azure Service Management REST API. You can add as many as 25 management certificates to a subscription.
In our case (later in this article) you will see that we will use the Windows Azure ASK tools to upload the created VM Image.
Here are the steps to do that:
- Create a new certificate as follows:
- Open command prompt with elevated privileges
- Execute the following command:
- makecert -sky exchange -r -n “CN=<CertificateName>” -pe -a sha1 -len 2048 -ss My “<CertificateName>.cer”









