You can only extend the last partition on a drive. To make the C: partition larger you would have to delete the D: partition and then extend the C: partition.
Jump out to http://www.acronis.com and download their trial of Disk Director Server v10. We use it frequently. The demo is, I believe, fully featured. It's an excellent tool, and I've done exactly this with it.
I've done exactly the same thing with the bootable C drive on one of our dell systems however I used the following tool Volume Manager. The re-partitioning was simple and required no down time.
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