wesley said:1. By default, ~/Documents/Parallels
2. All VM-specific items reside in the folder above and thus stuff in ~/Library/Parallels is irrelevant here.
3. No, because the disk file in question suffers double fragmentation - the inside of the disk file is fragmented and the disk file itself is fragmented. Trying to defrag the inside while the file itself is fragmented would be slower than having to defrag inside after the file itself is defragmented.
4. For best possible performance, yes.
I don't have a Parallels folder in ~/Documents, so I am still in the dark about where the VM Directory structure is. (In ~Library/Parallels>winxp> I have unattended.fdd, Windows Applications, winxp.hdd and winsp.pvs.)
David