Once that has run (it will take some time). Try powering on your virtual machine (mine crashed the first time around when I logged in via remote desktop but was fine after logging in via vmware browser plugin).
Once logged into the windows 7 virtual machine: Open control panel -> Administrative Tools -> Computer Management
In the left menu click Storage -> Disk Manager
You should see your drives with blue bars. Your C drive should have a block of unpartitioned space that was created by the vdiskmanager in the previous steps. Right click on C drive and click "extend volume".
Follow the prompts - default values should be fine