Windows Server 2003 was based on Windows XP and was released in four editions: Web, Standard, Enterprise and Datacenter. It also had derivative versions for clusters, storage and Microsoft’s Small Business Server. Important upgrades included integrating Internet Information Services (IIS), improvements to Active Directory (AD) and Group Policy (GP), and the migration to Automated System Recovery (ASR).
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To re-size a disk, select the Virtual Machine, Select Edit Settings, Highlight the Virtual Hard Disk, and select Edit there is an option to increase size. This only changes the physical size of the virtual disk, it does not grow the partition on the disk. See below.
IDE disks do not support: Expansion, and need to be converted to SCSI first.
Before making any changes to the partition structure of the disk, ensure you have a full backup, not a snapshot.
1. Resize partition with Gparted Live CDROM
i. Download Gparted Live CDROM (http://gparted.sourceforge.net/livecd.php).
ii. Upload the cdrom iso to the vSphere ESX/ESXi datastore.
iii. Mount the cdrom or iso on the virtual machine.
iv. Shutdown and restart the virtual machine booting from the cdrom.
v. Select Resize partition.
Here is a Tutorial Walkthorugh of how to resize a partition with a GParted Live CDROM
http://gparted.sourceforge.net/larry/resize/resizing.htm
http://www.howtogeek.com/howto/windows-vista/using-gparted-to-resize-your-windows-vista-partition/
2. Using DISKPART.exe
(the system disk cannot be re-sized within the virtual machine, but other disks can be resized, eg. D: E: etc
i. Shutdown the virtual machine.
ii. Remove disks from virtual machine (but do not delete them).
iii. Add the disks to another virtual machine.
iv. Start up virtual machine.
v. Use Diskpart in the OS to extend disks.
see here for details on Diskpart usage
http://support.microsoft.com/kb/325590
3.Use VMware Converter Standalone to complete a V2V (virtual to virtual conversion).
there is an option to increase or decrease the size of target disks on the desintation at conversion.
Download VMware vCenter Converter here
http://downloads.vmware.com/d/info/datacenter_downloads/vmware_vcenter_converter_standalone/4_0
VMware vCenter Converter Standalone 4.x Documentation
http://www.vmware.com/support/pubs/converter_pubs.html
VMware vCenter Converter Standalone 4.3 User Guide
http://www.vmware.com/pdf/convsa_43_guide.pdf
For the conversion steps, read fellow Expert Bestway's article.
https://www.experts-exchange.com/Software/VMWare/A_3639-VMware-vConverter-P2V-for-Windows-Servers.html
Best Practice Video Guide here
http://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1004588
Also the VMware KB here
http://kb.vmware.com/kb/1004071