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Resize Virtual PC's drive(s)?

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I have two virtual XP machines running successfully on my Win 7 PC. I would like to reduce the size of the volumes on these machines to regain disk space on the host hard drive.

One of the virtual machine's volumes was created with Backup and Recovery 10 (workstation).

Is Disk Director the correct product to use for this?

Thank you.

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No, Disk Director can't control the way virtual disk is stored. In order to shrink VHD disk, if you're using MS Virtual PC, use 'precompactor' (to zero out unused space; it's a bootable .iso included with Virtual PC) and after that Virtual Disk Wizard (that removes zeroed dspace from the CDH file and makes it smaller)