I have read through the messages, and people have asked the same question I am asking, but the answers seem to be a few years old and more involved that what I want to do. First, I have Parallels 7 running great on my MacBook pro using windows 7 and a virtual disk on an external hard drive. (A single pvm file in a folder on this disk, not the whole disk.) I have an old Windows XP pro machine that has died and have the hard drive hooked up to my mac via a usb cradle. That hard drive is fine. All I want to do is create a second virtual machine and another single pvm file from the old machines hard drive. It seems like this should be a simple option, but I am not finding a simple option to do so without a lot of guesswork, (create a bootcamp partition, install windows, import, compress the disk, convert it to a... etc, etc.) I don't want any of that. I just want to convert the XP disk to a pvm. I am running Parallels 7. Can I do this? I have no issue in buying the upgrade to 8 if it makes it easier. Thanks for your help.