VHD File Size is lesser than the actual data size present inside it

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Windows

Win2008-R2

virtual

, +

Hi,

I have a VHD File size of 29 GB., I attached the VHD to disk Management in 2008 R2 machine, the VHD has two partition say z: and c:., z: has used space of 33 MB of Full size 100 MB and the C: has used space of 75GB of Full Size of 300 GB.

How is this possible ? In my understanding, the VHD File is a Dynamic Disk and it should be of size equal to the size of the Used Size in it.

Have someone seen similar kind of behaviour, is it a valid behaviour ! Is there any theoritical explanation ? I googled regarding this, but not able to find any valid explaination.

Thanks,
Sajith