If you have run out of space in your virtual image hard disk and didn’t know the way out of it; read on. I ran into this problem last week and found the following solution after a bit of googling. Though there were a lot of posts targeted at VMWare, I was looking for ones specific to Microsoft VPC. The magic tool that you have to look at is called VHD Resizer. It is a free download available from the VM tool kit site. You just have to register on the site to download.
When you run the tool, it will ask you to point to the vhd whose hard disk size you want to increase. You can also set the size you want to increase it to. The only thing that needs to be remembered, is that it makes a copy of the VHD so you will need the disk space to cope with it.
When this process is complete, the next thing you have to do is to make sure your volume uses the new space allocated. You can do this by using the DISKPART command. You will find the necessary instructions here. That’s it!!! You will have your new drive with loads of space!!!