Failed to backup and convert virtual machine

[I am experiencing problems updating to Parallels Desktop 4.0

I am running Parallels Desktop 3.0 for Mac
Build 5608 (June 10, 2008)

It is running on a Mac Pro
Processor: 2 - 3Ghz Quad Core Intel Xeon
Memory: 5GB
Startup Disk: Macintosh HD

I have two guest operating systems.
I did a convert on the Vista Ultimate one which did not have much in it and it worked okay.

I then tried to backup and convert the Windows XP professional Virtual machine and it failed.2

I have restored my disk from a superduper backup, and have been running okay after the restore using the parallels 3.0 version restored.

This is my Virtual machine directory before the conversion

Then I did an install of parallels 4.0

Disk drive before conversion

303 GB space left

When I do the backup and convert I am goingto copy to Disk 2 which has: 874 GB left

It picks up both my virtual machines

Backing up to disk 2:

And again it failed at least this time I have a trail of what happened.

Unable to complete the action for the virtual machine %1.

No Virtual machine configuration file could be found in the location "%2".

Now I am going to try to convert it without backing it up.
still the same.

If I look in the backup directory there is nothing there ???

Now I am dead in the water an need to restore my machine from a backup.

Please help me get this working.

Thanks Jim

 

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