What are some creative solutions to a poorly sized partition using mirrored stripping of drives?

I've inherited a Win2003 Server box that does not have enough space partitioned on the C drive.

My goal is two fold. One is to eventually retire this server, because it wasn't improperly configured for the tasks it is supposed to do. Secondly, I need some options for my client until they can come up with the necessary funds to replace this server.

I was able to compress the c: drive. However, this only freed up about 1.25gb of space. This is clearly not enough for a server. However, the D drive has about 55gb of free space.

I was thinking about putting in another RAID controller with new hard drives. However, I'm wondering if the cost benefit would be less than buying a new server.

The other option I was considering is taking the drives off line and resizing the partition one at a time using Partition Magic via an WinXP client box. However, before being adventuresome, I thought to include the EE community for their thoughts.