Solution to Reduce Virtual Volume Size?

I have read many threads regarding this, and I'm pretty sure I understand, but please read my description and help me understand more fully if you can...

I am running Parallels 4.0 on a MacBook Pro with a 110GB hard drive. I have successfully (after some hiccups) set up XP Pro on a virtual Machine. Everything is running great, but when I set up the XP Pro Virtual Machine it created a "virtual volume" sized 32GB. The Virtual Machine that resides on this "virtual volume" is set to be the expanding type, and was just over 8GB in size. I have just run the Compressor utility to reduce that to just over 4GB.

From reading the forums, I understand that 32GB is the standard size of a default "virtual volume". I am also of the understanding that this cannot be reduced in size. Is this correct?

If the above "virtual volume" cannot be reduced in size, can I create a new one and somehow specify it to be smaller, like say 20GB perhaps? Then after this is done, copy the clone of my previous Virtual Machine to this new "virtual volume"?

Does this make sense?

My goal is to reclaim more drive space for the Mac OS and have less available for the XP Pro Virtual Machine.

Thanks for any advice, or best practices that anyone can share...

 

Actually when you create Virtual Disk it is set to expanding and this means that the disk size is only size of data you put inside,
You can create 200 gb file on 40gb partition, and if there is only 10 GB, it will take only 10 gb size on mac