1) Verify the current disk partition of the OEL guest (e.g. /dev/hda3)
2) Assign a OEL Boot into Linux rescue mode (e.g. using OEL or OVM) and mount the file system as read only.
# mount -n -o remount,ro -t ext3 /dev/hda3 /3) Shutdown the OEL VM.
# zerofree /dev/hda3
# shutdown -h now
# poweroff
4) Shrink the VM (from the host OS)
# vboxmanage modifyhd EnterpriseLinux.vdi compact
For the guest VMs, such as Ubunutu 9.10 where ext4 file system is used, I can not get zerofree to work; but a good workaround is to CloneVDI tool.