Some friends here on the Hyper-V team shared a PowerShell 2.0 script for converting your VHDs:

# Convert a VHD

param(
    [string]$vhdPath = $(throw "Must specify full VHD path, including extension"),
    [string]$destPath = $(throw "Must specify full path of destination VHD, including extension"),
    [switch]$Fixed,
    [switch]$Dynamic
)

#obtain the Msvm_ImageManagementService class
$ImageMgtService = get-wmiobject Msvm_ImageManagementService -namespace root\virtualization

# Convert the VHD
if($Dynamic){
    $result = $ImageMgtService.ConvertVirtualHardDisk($vhdPath,$destPath,3)
}else if($Fixed){
    $result = $ImageMgtService.ConvertVirtualHardDisk($vhdPath,$destPath,2)
}else{
    throw "Must specify type of vhd to covert to with either the -Fixed or -Dynamic flag"
}

if($result.ReturnValue -eq 4096){
    # A Job was started, and can be tracked using its Msvm_Job instance
    $job = [wmi]$result.Job
    # Wait for job to finish
    while($job.jobstate -lt 7){$job.get()}
    # Return the Job's error code
    return $job.ErrorCode
}
# Otherwise, the method completed
return $result.ReturnValue

For more info on how to use PS cmdlets see: http://www.microsoft.com/technet/scriptcenter/topics/msh/cmdlets/index.mspx

See also James O’Neil’s New and improved PowerShell Library for Hyper-V. Now with more functions and... documentation!

For all 35 sample Hyper-V PS1 scripts in a zipfile, go to: Hyper-V PowerShell Example Scripts.zip-download