I do most of my development using virtual machines now and according to all the information that I’ve seen fixed sized disks perform better, this great until like me you start to run out of space on the VM you’re using….
So in my hunt to find a good utility to re-size my vhd I stumbled across a tool called VHD Resizer. It’s very easy to use and creates a copy of your original VHD in a new VHD file of a size that you choose :-)
Download the tool here, download requires registration.
Edit: Oh yeah, you’ll need to use a tool like Partition Manager to allocate that space into your VHD afterwards.