Need to reduce Virtual Machine .hdd size

I've just migrated from a Macbook Pro with a large hard drive to a Macbook Air, and much smaller hard drive.

My Windows XP .hdd virtual machine was set to 29.55GB. On my macbook air, that means I have no space left on my hard drive. Within the .hdd file, windows XP and my files only take up about 8GB of space.

So I need to reduce the size of the .HDD file.

I am not running smart guard, have no snapshots, and have run the compressor, and defrag my C drive in windows etc.
None of these things reduce the size of the .hdd file.

I can see how parallels tools lets you increase the size of your virtual machine, but I need to reduce it. Is there any way to do this, or am I stuck with the drive set to this size?

Tnx, Jason

 

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I have the same problem. Any suggestions?

 

External HDD

Replies have taken an age, to a simple question. Can you reduce a virtual machine in size in Parallels.

Latest response is the request to download and install software to take over my machine to look at the virtual .hdd file.
No way I am allowing that. The thing works, it's just too big.

Should be straight forward to reply yes or no!

Meantime I have moved the .hdd file to an external hard drive, slimline pocket one, and that works. Just have to add a clone of under back up process.