Today I needed to expand a VHD file. Below are the “easy” steps I followed to get it working.
1. Download VHD Resizer and follow instructions to expand the VHD file. The problem is the extra space will be unformatted raw space.
2. Download Virtual Server. Do a Custom install and only install VHDMount. I use only VPC 2007 so I only cared about VHDMount.
3. Open a Command Prompt and type the following commands (in the host OS). Note: I copied the vhd file to the same directory as VHDMount.

