Large Parallels File size

I recently upgraded to parallels 4, and chose to back-up and convert. i allotted it 30 gigs of HD space, as i had my previous one, but its saying the file for parallels is 110 gigs. I dont know if they bundled both the back-up and the converted file into 1 file, but still, it should only be around 30 gigs.

Mac 10.5.7
Build - 4.0.3844
2.16 GHz Black Macbook
4 GB RAM ( but it only reads 3 ) - Parallels has 1
320 internal HD, 1 TB external, and 500 external - parallels has 30.

Any suggestions? Thanks

 

*Update*

I found another file with my back-up in it, which was 30 GB, so why is my new Virtual Machine have a 110 GB file?