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I have VirtualPC running in Win7 64bit. it's hosting a Windows XP vm. it's running out of free disk space so I increased the the vhd size using VHD Resizer however the free disk space didn't change.

I followed the step from this question where I attached the vhd file to Disk Management. However the Expand Volume option is disabled. I see about 15GB in unallocated volume. I am not sure where this is coming from. The vhd size I chose in resizer was 1.6GB.

The vhd is dynamic so I don't know why it's not expanding when it needs to. When I shose settings in the vpc, it offered an option to make it fixed size. I am expecting an option to make it bigger although.

Any ideas?

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It's dynamic up to size X. This is why I use fixed size disks. You have to do a partition resize in the guest OS to use the rest of the space. On dynamically expanding volumes, sometimes this breaks things. Another approach is to use a new larger static vhd and from inside the guest dd the data across.

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Another solution would be to add another vhd to the VM as a second disk.

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