I did it with commvault. but i think DPM can give you a folder of your VM ...
You have to install a new VM with the same service pack etc.It must not be a domain controller. hotfixes should be the same as well.
then you can apply a system state restore to this new VM and once it done it will ask you to reboot and once you reboot it will come up with old vm name/settings/configurations.
if you have vhd file you have to convert it to vmdk and if you got a full folder you can just register it with your VC and power it up.