Not Enough Disk Space Available to Start Virtual Machine

I am getting an error: "There's not enough disk space available to start the "<name>" virtual machine" Free at least 383 MB on the hard disk that stores the "<name>" virtual machine and try again.
Problem ID: 456

I have verified I have 2.0+ GB free on my Mac Book HD. I also tried manually expanding the VHD by 1GB.

I have noticed that every time I quit Parallels and then retry, the amount of space it is requesting (e.g. 383 MB) keeps going up!

Any ideas?

 

Hi EricK3,
Please follow the steps suggested at http://kb.parallels.com/10117 to resolve the issue.

 

Hi there, I'm having a similar issue. The HD has enough space though... See screen shots!