This is Part 3 of the tutorial Installing Windows 8 on Windows Azure
Part 2: See how to upload your VHD to Azure
Part 3: See how to create a Virtual Machine from VHD in Azure
Part 4: See how to capture an image in Azure after Sysprep
Part 5: See how to deploy Windows 8 in Azure
Video of entire tutorial: Checkout how Windows 8 runs on Azure
Choose a VHD Disk, then assign a name to the machine.
I then select standalone machine and add it to a predefined network, where the domain controller also resides.
Boot up the machine. It takes a few minutes to prepare it but then you can download the connect.rdp and immediately access your Windows 8 Machine running in the Windows Azure Cloud.
After the image creation is successful you can capture the image on Azure.
Next step, Part 4: See how to Capture an image in Azure after Sysprep