I cant attach the vhd to server 2008 disk management as it says the disc is invalid But it does run in HyperV, but as I need it offline I cant extract it when the hyperV is running.
7Zip can read VHD files and extract the contents (though NTFS Extended Attributes and such will be ignored). It can also read disk images with NTFS partitions, as well as WIM files.
7Zip does have the ability to access the VHD and extract content, but if you want to access the VHD natively you can use Disk Management in Windows 7/2008.
Open Disk Management whichever way is easiest, then select Action > Attach VHD. You can then mount your vhd as read-only or write-able. Assign a drive letter and access as if it was a normal drive. The same can be done with diskpart
select vdisk file=filename.vhd, attach vdisk, Assign letter=F