When you create a Microsoft Virtual Hard Drive either through Virtual PC or Virtual Server, you have to specify the maximum size of the file up front. While you can set the VHD to be a fixed or dynamically sized file, the total size the VHD is determined at the time you create it. Over time, however, you may want to increase the total size of the VHD file as requirements for the system change to allow more space for installed programs and data files.
Over at Sysadmin Geek, Jason Faulkner has posted a blog article showing how you can increase the size of your VHD file, using the VHD Resizer tool.
How to Resize a Microsoft Virtual Hard Drive (VHD) File [Sysadmin Geek]
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