Disk Management

Tool: Disk Management

Use this tool to Create partitions, Shrink partitions, Extend partitions on your hard disk.

You now need not rely upon non-microsoft products for partiton related issues..

You can also create or attach VHD - Virtual Hard Disk using Disk Management
Disk Management ---> Action ---> select Create or Attach VHD  (specify path)

you can open Disk Management from start menu by typing diskmgmt.msc in search