Re-sizing the C drive of your vmware installation.

1 Re-sizing the VM disk
1.1 Power oww your virtual XP installation
1.2 Select VM menu item, and press settings in the drop down list
1.3 Select the Hard Disk entry, and press the utilities button in the lower right corner of the dialog
1.4 Select Expand from the utility list, set the desired size in the dialog (I went for 100 GB)
1.5 Wait until the virtual machine has expanded the drive size, then click save

2 Re-sizing the virtual XP disk
2.1 install a partition tool on your machine, I'm using EASEUS partition magic professional
2.2 Follow your tool's re-size procedure (Mine is listed below)
2.2.1 Select the C drive and click the re-size button.
2.2.2 Drag the allocated space pointer to the desired size (100GB)
2.2.3 Press apply and close the partition tool
2.2 Reboot your virtual XP image

3 Check new partition size
3.1 After rebooting your virtual XP image, press "windows key" + e
3.2 Right click the Local Disk(C:), and select properties