Problem:
The 30GB C: drive was running out of free space on my Windows 7 VM guest on VirtualBox v4.2.16.
Solution:
1. Shutdown VM.
2. Extend it to 45GB:
$ cd /home/user/.VirtualBox/HardDisks
$ VBoxManage modifyhd windows7.vdi --resize 46080
0%...10%...20%...30%...40%...50%...60%...70%...80%...90%...100%
3. Extend partition size in Windows 7
a. Start the VM
b. Run diskmgmt.msc > right-click C: > Extend Volume...