Double post. Yes, you can use a product like Ghost, or other imaging program
to copy your existing volume to a larger drive and expand it to whatever size
you desire.
It's a good idea to make periodic image-based backups of a terminal server
as it infinately faster to restore from an image then to have to build the OS
and restore from backup. I do this to a 250GB USB 2.0 external hard drive so
I don't have to crack the case on the server (to make the image) and don't
have to purchase an enterprise imagecasting application (just a few licenses
of your favorite imaging app)