I haven't tested it, but you can shrink/grow the winclone image so it will then fit a newly re-created bootcamp partition. I think there's a whole process to get this done successfully documented on the winclone site.
Thanks guys.
Apple on their site advise against using apps that change the partion size of bootcamp.
In any case would Option 2 also work? Reinstall Windows from the DVD iso image and then restore the system image from there? I guess it will take a bit longer but don't have to buy winclone.
To be clear ... you are not using the WinClone app to change the partition size of bootcamp ... you are only changing the size of the Windows image within that partition to eliminate the "free space" for a smaller saved clone image. You use OS X BootCamp Assistant to actually alter the disk partition itself. And ... it is all done under OS X so there is no worry about a Windows utility screwing up your OS X disk.
WinClone simply eliminates the tedious process of re-installing Windows, the endless updates and reboots, re-installing all your Windows applications, the endless updates and reboots, and then re-activating everything again. Plus, you can keep periodic snapshot backups of the complete Windows environment using WinClone in the event you need to reinstall.
Got it. Will Option 2 work as well to avoid Windows Update?
Although I have used Windows "System Image" (your Option 2) to restore my PC after a disk change, I have always been reluctant to use it on a BootCamp install over concerns that it might alter the OS X install on the same disk. If your Windows is on a separate disk, I might try it ... but if it shares the OS X boot disk, make sure you have a good clone (CCC or other) of your disk before trying it.