This video shows how to merge Windows Server 2008 partitions. The steps to merger partitions in Server 2008 R2 is the same with normal editions.
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After merging partitions, all files in drive D moved to system C: drive.
Though it is possible to merge Server 2008 partitions, it is not the best choice to solve Low Disk Space problem and extend C: drive by merging partitions, because all shorcuts to partition D becomes invalid after merging.
The best way is resizing partitions, shrink an data drive to get some free space and extend the system C: drive.
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