Can shrink only upto 4GB!

Welcome to Windows Seven Forums, Abhishek.

Windows 7's disk management utility is not very versatile and for that reason many of us use Partition Wizard.

Partition Wizard : Use the Bootable CD

Just download the PW ISO and burn it to a blank disc then boot into it to edit your hard drive partition structure. Apply the changes and wait for them to complete then boot back into Windows.

Window Disk Management won't move certain files to make more space. You can get around that with Partition Wizard.

AbhishekS said:

Alright, thanks for the help. I have no idea on how to use Partition Wizard! I had a look at the tutorial and it seems complicated! I may find it easy when I read it tomorrow morning, the time here in India right now is 02:42am and I really sleepy!
But why is it that Windows Disk Management Utility does not allow me to shrink more than 4GB, any specific reason for that?

Take things step-by-step, read through the tutorial and you'll be fine.

1. Download the Partition Wizard ISO.
2. Burn it to a blank disc.
3. Boot into the disc you've just created.
4. Choose the Partition Wizard option.
5. Select the partition you want to resize.
6. Resize it.
7. Apply the change.
8. Wait for the change to complete.
9. Boot back into Windows.
10. Check in disk management that the job has been done.

As for why disk management wouldn't do the job, as explained in the previous post, Windows won't shrink beyond what it sees as immovable files, such as those required for shadow storage among others.