You can shrink a disk from inside a virtual machine running Windows with a command line utility named VMwareToolboxCmd.exe. The disk must not be a pre-allocated disk but should grow dynamically.
Shrinking a disk can also be done from the Control Panel VMware tools entry, but when that is not available you can also do this from the command line. The utility is located in the folder C:\Program Files\VMware\VMware Tools.
Installation of ESXi can be done from CD or with PXE but it can also be done from a USB-disk / USB-key. The easiest solution to create a bootable ESXi installation medium is to use the program UNetbootin that is available for Windows, Linux and Mac. You can download the program from the UNetbootin home page at unetbootin.sourceforge.net
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