Hello Jeff and All,
I'm also a newb to Virtualization and have successfully used VHDResizer and am happy to recount my experience. To begin with I grabbed an existing Virtual PC folder and copied the whole thing, just to cover my butt and have a backup if things went terribly wrong.
Then I ran the app and got started resizing a MS Server03 image with SQL05 installed so I could have a test enviro for some DB mods. I ran out of space restoring the DB (you need 1.5x the file size of the DB btw ... don't learn this the hard way),
First, select the "Source VHD to Resize" by hitting the open button and browse the file system until you find your VHD file you would like to resize. Next specify the "Destination VHD" by browsing the file system to your destination and append the file name at the end of your path.
On a side note, there's an important extra step to take here. Name your destination file (the resized one) exactly the same as your original, but add a "2" or somethign on there to designate a difference. This will help prevent a future conflict when you run the .vmc file, and I'll you'll see why in a minute.
Then select the type from the "Type" drop down area. You have the option of using a fixed or dynamic virtual hard disk. Fixed will always be a certain size, dynamic will expand until it reaches the limit you specify.
Next specify the "New Size" of the vhd using GB or MB, and make sure the "New Size" is the total HD size you are looking for.
Hit the "resize" button and watch it crank (remember formatting & partitioning HDs, something similar is going on here). When the app finishes, delete your original file (previously your target file) and then use that files name for the new, resized file. What this does is prevent an error message when you click on the .VMC file to start up the virtual PC. The program will see a conflict if you do not do this and let you know another virtual image with the same name exists in the same directory etc....
Ok so we have our new, resized .vhd and then we can double click the .vmc file and viola, you should be booting into your virtual PC. Scope out your drive size, it should be bigger!
I did not receive any errors, found the interface intuitive, and was very pleased with this program. Special thanks to the creators, hats off. This saved me much grief.