Ever wanted to resize your Windows Server VM?  This works for Server 2003 and Server 2008 if you need to resize the C: drive of your virtual machine.

This is the simplest way to extend your VMs hard drive.

Using Vmware Converter (http://www.vmware.com/download/converter/) to shrink or extend a disk

o When you use Converter to copy a VM it will transfer the data to the
destination server by one of two ways. If you do not change the disk
size or increase the size of your original disks then it does a block
level clone of the drive. If you reduce the size of your original disks
it instead does a file level clone of the drive.
o Download and install Converter on the VM that you want to resize the drives, reboot after the install completes
o Start Converter application, click the Import Machine button
o Click Next at the Welcome screen and then Next again at the Source screen
o Select ‘Physical Computer’ and click Next
o Select “This Local Machine” and click Next
o At the Source Data screen select your volumes and change “Maintain
Size” to “Type Size in GB” and enter your new disk size and click Next
o At the Destination screen click Next
o Select “Import this machine to a Vmware ESX Server or VirtualCenter virtual machine” and click Next
o At the Destination login screen, select your ESX/VC server and enter the login information and click Next
o At the Virtual Machine Name and Folder screen enter a new name for your VM and select a folder and click Next
o At the Host or Cluster screen select a host for your destination and click Next
o At the Datastore screen, select a datastore and click Next
o At the Networks screen, configure your NICs and click Next
o At the Customization screen, click Next
o Click Finish and the conversion will begin
o Once the Conversion is complete, edit the new VM settings and remove
any extra hardware that Converter adds (USB/serial/parallel ports, etc.)
o Shutdown your original source VM and power on your new destination VM
o Make sure everything is functioning properly on the new VM and you can delete the original VM