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You can also use partition magic to resize the partitions if you have that available to you. It is much easier to use
/Applications/Parallels/Parallels Image Tool. That will set the size of your virtual disk. Once that process has completed, start your virtual...
Once that's done you should be able to make use of the free space using the Windows Disk Management utility.
Go to the help menu and check for updates. The new update for parallels comes with a HD file resizer/ virtual disk utility. Works fine.
Humble Pie... I've taken my post down in response. Can you tell me what else should have been done? I haven't had a problem with it so far but I...
I'm onto a winner... apparently not...