Abstract: A virtual appliance environment (VAE) consists of components residing on a computer BIOS ROM and also on a mass storage device. The VAE includes a virtual appliance (VA) for diagnosing malfunctioning hardware or software. The VA for diagnosing malfunctions tests the hardware and/or software resident in the computer and transmits the results of the test to a server, which diagnoses the problem and transmits instructions to the VAE for saving the data, determining whether the computer is under warranty, and providing shipping information to a user. The VAE can also download a VA for scanning viruses. The VAE transmits the results of the virus scan to the server, which determines the type of virus infecting the computer and transmits instructions to the virtual appliance for downloading the appropriate VA for removing the virus. The VAE can save the data to another source, remove the virus, and restore the data or simply remove the virus.