Is there any way to remove the BDEdrive partition in Server 2008 R2 after the OS is installed? (long story short: server deployed before we noticed the BDEdrive issue, now want to extend the C: drive but can't due to this BDEdrive nightmare. Also, we can't just rebuild the server as it is in production....) Is it possible to use BCDboot utility to get around the BDEdrive problem? thanks in advance...

I had the same problem with a Windows 7 install and your fix worked for me also. Thanks very much for sharing it.

Jon - THANK YOU!!! Worked like a charm!

In my case I tried your solution and yes it worked like a charm. Except I needed an extra step. which was to use diskpart and make volume 1 active (c: drive) in order to boot again. Mario

This worked for me also after adding more space to a VM. When I changed the C drive to active and rebooted my machine could not boot so I loaded up the Windows DVD and let it repair the boot for me. Once that was done I deleted the BDE partition and extended the C drive. Thanks!