Shutdown VC first and then follow these instructions...
http://sqlserver2000.databases.aspfaq.com/how-do-i-reclaim-space-in-sql-server.html
Also here's some info I documented on how to reclaim space in the db...
How can I reclaim space in my SQL database after I have purged old data from it?
• If you have deleted old task/events or perfomance data by default your database will not automatically shrink to recover this free space and reduce the physical size of your VC database file on your host OS disk. You can set your VC database to automatically shrink by loading SQL Server Enterprise Manager, selecting your VC database, then Properties and on the Options tabs you can check the “Auto Shrink” option. Alternately you can manually shrink the database by doing the below steps. This procedure will shrink both the database (mdf file) and transaction log (ldf file).
o Load the SQL Query Analyzer on the SQL Server and login with your virtualcenter database credentials
o Type the following in the query window
 DBCC Shrinkdatabase ( database name, target free space percent ) ie. DBCC Shrinkdatabase ( virtualcenter, 10 )
o This will shrink your database down and reduce the physical file size and leave 10% room for further growth. Your database will auto grow onit’s own once it uses up the 10% growth space.
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Thanks, Eric
Visit my website: http://vmware-land.com
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