Windows: Is it *possible* to create a (virtual) video card driver?

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i want to create a virtual monitor. The way this would work is that the virtual monitor would appear in a window on my desktop. As far as Windows knows it is just another monitor.

It occurs to me that it would, as a practical matter, have to be done as video card driver (i.e. rather than the video going out a wire to an LCD panel, it would go into another window on the desktop).

Does what i'm describing sound, technically, possible? (from a DDK point of view)

Note: i can't use a virtual pc, because no virtual PC has resolutions high enough for my needs. Also because it's not what i asked for.

Note: My reasons are unimportant, but i can make some up:

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