Simply Accounting, Windows XP, Parallels 9, Backups fail

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Parallels User

Hi,
I'm on an imac, OSX Mavericks, Parallels 9, Windows XP loaded on my virtual machine and Simply Accounting 2008. I would like to create a backup file within Simply Accounting so that I can reformat my virtual machine and upgrade to Windows 7 or 8. Then I can reinstall Simply Accounting and restore from the backup file. But every time I try to create the backup file, I get the dialogue box pop up "Backup failed. There is insufficient space on the disk for the backup file." I have tried increasing the memory to the maximum 16GB and the 4 CPUs, without any luck. Simply Accounting is the only program loaded on windows, so there is no way to create more disk space within the virtual machine.

I really need to create this back up so that I can upgrade windows. Any suggestions for me? Thanks in advance.
 

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This issue has been resolved via chat tech support and remote log in. Thanks.
 
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