How does Parallels, or any virtualization application for that matter, get around the 4GB OS file size restriction when it comes to the virtual disk image used to run a guest OS? For example my winxp.hdd file was ~1GB for just the OS (XP Pro). Am I really limited to only 3GB of storage space on this virtual disk? Or, is there a setting to increase this somewhere that I've missed? I keep getting these Windows pop-up messages telling me that I need to free-up space, which sucks by the way. Thanks.
There is no 4GB restriction unless you are using FAT32, where files may be up to 4GB (minus two bytes). If you created a 4GB virtual disk, you have two choices. One is to create a second virtual disk and make it as big as you like and use it as a D drive, and the other is to refer to the sticky "how I expanded my HD" thread for a full discussion of methods for making it bigger. Be sure to back it up first.
Oh, for some reason I was under the impression that the .hdd image would expand dynamically without limits based upon the virtual disk's storage needs. Thus the need for the compressor utilty in order to reduce the .hdd file size once things got a little out of hand. I'll check out the sticky.
Well, that's partially correct. It will expand up to the limit it was originally created for. This limit can be increased with the image tool, but the partition inside has to be increased separately to use the space although a second partition can be created to use the new space. Compressor is needed to reduce the size if you add and tend delete a lot of data. The .hdd file is the logical equivalent of a sparse image, storing only the data and not the "holes".