Thanks for the utility and the tip. Using XP I also found this step I needed to follow:
After running VHD Resizer, I attached the new VHD as E: (D: already used) to my existing VPC. Booted up on the old vhd, ran
c:\diskpart
list volume
select volume 2
extend
Shutdown vpc
Changed vpc settings
Removed old vhd
Attached new vhd as C:\
Started vpc and everything is working fine.