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This worked for me... The solution suggested by drmike here: http://forum.parallels.com/showthread.php?t=108364 worked for me. Don't worry about...
Thanks It's odd that, apparently, we're the only two people to have experienced this problem. Good luck!
No? I gave up trying, and created a new, larger, VM .
I've been struggling with a pitifully small virtual C: partition on a Vista VM, and so I tried to expand the hard disk. Happily (as will become...