Resizing Server 2008 Hard Disk

I have a slight problem. I have a Windows Server 2008 virtual machine with a 558Gb Hard drive that I need to migrate to another virtual host. The target virtual host has just 550Gb of space in which to host this machine.

There is tons of space (over 250Gb) on the machine that needs to be moved but when I run Shrink from the management console it tells me it can only be shrunk by 3004Mb.

I have turned off the swap file and restarted the server but still it will only let me shrink it by 3004Mb.

Is there a way to "free up" the already empty disk space?

 

I do not have any experience with Windows Server but can you try and resize using diskpart?

 

I used this - http://www.partition-tool.com/easeus-partition-manager-server/ - in resizing a SBS 2003 C: drive. Caveat - This was a physical drive not virtual.
Also, this is pricey but performance was flawless.