
Originally Posted by
desgael
As far as I know, as long as it is not FAT there should not be problem with copying large files. And since the virtual machine is, basically, the file on a Mac - Windows would not be affected.
As for the external HD, since this is Parallels 3.0 I would suggest to copy the hard disk image, winxp.hdd, file (/Users/<username>/Documents/Parallels/<VM_name>/winxp.hdd) to the external HD and then create a new virtual machine using custom installation mode choosing "use existing hard disk image" option, when prompted, and pointing to that .hdd file.