Does any one know what partitioning systems are or are not supported in relation to this feature? I have installed archlinux as a guest OS and set up an expanding virtual disk using GPT and 4 ext4 partitions plus a swap and GPT BIOS boot partition. I would like to reclaim unsed disk space but Parallels says this disk system is unsupported and the only information I have found currently is this forum post from 2008 relating to compression / compaction - http://forum.parallels.com/showthread.php?21762-Virtual-HD-compression-compaction. I would be happy to delete my VM and create a new one using a single partition with MBR boot table or whatever if that meant I could reclaim space as I deleted files but wanted to know what system to use before I took that route.
GPT is not supported Parallels only supports MBR and not GPT at this time. http://kb.parallels.com/en/111744