Why is my VM 3x the size under 4.0 as it was under 3?

I upgraded to 4.0 a couple of weeks ago, and although I had to go through the manual workaround, it seemed to go just fine. For some reason, though, even though I have no snapshots and I have the rollback option turned off, the VM takes up 100 GB of drive space (for a 30 GB VM). And that's after compression -- immediately upon upgrading, the VM was up near 130 GB, which pretty much filled up my MacBook Pro's hard drive.

Is this normal? I am fairly certain that the VM size under Parallels 3.0 was, well, right around 30 GB. Why the huge bloat, and what can I do about it? I really don't want to have to dedicate my laptop's hard drive to my Parallels VM.

 

Right click on pvm, show package contents - if you can see folder with VM name and (backup at the end) you need to move that folder to external disk, this is your backup version 3 VM