There is no free space on partition (C:) Windows 7 installation

Hi!
When I try to install Windows 7, the message
comes up.
The disk har hundreds of Gb free, and when I go to Disk C. "properties" in Windows Explorer, this is confirmed.

What can I do?

Windows 7 32-bit RC

I have an iMac 3,06 Ghz, 4 GB ram and 1Tb disk.

 

Same problem - is there an answer out there in Parallels land?

I am having the same issue trying to install 64 bit Windows 7 RC.
According to the c: drive directory listing under Windows Vista, I have a c: drive of 35 GB with only about 1.3 GB available. The virtual machine has the disk size option set to disk expanding. This may be because I run Parallels transporter to keep the virtual machine small. However, the Mac drive has over 60 GB of free space.
Windows 7 wants about 17 GB to upgrade Vista 64 Ultimate. It only sees the 1.3 GB of available space.

How do I get around this?

 

Found the answer. When you created the virtual machine, you selected a low value for the virtual hard drive, something like 32 GB or 64 GB. As a result, your existing Windows virtual machine only sees a few GB left when you try to upgrade to Windows 7. Windows 7 need about 16 GB of free disk space.

Use the Parallels Image Tool in the Parallels app directory to select your virtual machine hard drive and then increase its size. Then the Windows 7 configuration checker will see enough space.

Good luck.