Conflicting virtual machine error

I've run into the v4 upgrade installation problem discussed elsewhere on this forum. I've attempted this solution, "Navigate to VM folder, right click on pvm file show package content, and delete .sav and .mem files, or start VM, and shutdown it do not suspend." Searching my Mac OS, I can't find files with either .sav or .mem files. What exactly is the "VM folder"? Is that something I should find on the Mac or in Windows when it is running?

 

Your VM folder is usually located in /Documents/Parallels/ folder on your Mac and is called as your Virtual Machine (for example, Microsoft Windows XP). Also you can search with Spotlight for .sav and .mem files, if you have not tried this.