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Never mind... For others running into this issue. I emptied the trash basket on the Mac side and restarted Parallels and everything works....
I have access to an external hard drive we use for running backups on some non networked pc's at our shop. What's the procedure for moving files...
The error message says I have 194 MB of free disk space and need 512MB. If I can't start the VM how do I free up enough memory to get it to start...