In order to use a dynamic volume on a Windows XP/2003 system the original basic disk will need to be converted to a dynamic disk. Existing basic partitions on the disk will be upgraded to volumes, however upgraded volumes may not then be extended. To convert a disk to dynamic there must be at least 1MB of unpartitioned space available on the disk.
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To convert a basic disk to dynamic the disk management utility is used.
Right Click on Disk 1 to upgrade the disk to dynamic.
Select “Convert to Dynamic Disk”.
Select the disks to be upgraded to dynamic disks, in this case Disk 1 then click OK.
Disk 1 has now been upgraded to a dynamic disk. N.B. This is a one way conversion i.e. the disk cannot now be converted back to a basic disk without first repartitioning the disk.