Hi, I tired searching for the topic I'm about to bring up, but it came back with no matches. Sorry If it's worded differently in an existing thread somewhere else. Because of the limited size of the OSX boot disks in the MBP's, many owners, including myself, are using external drives. All well and good. But when I try to create hdd's for the different partitions on my external, it ERRORS out every time I try to create a plain drive. No matter what OS I'm trying to load. When I choose expandable drive, it seems to WORK every time. I can live with that for the moment, but when I open Tools and try to convert the expandable drive to a plain drive, I keep getting the error that there is not enough free space on my OSX boot drive to accommodate the temporary file that needs to be written for the conversion. I need the ability to tell parallels in which partition on what drive that I want the temp files to be created. I have one 1TB drive now and will expand to two in a few weeks. So trying to convert expandable hdd's to plain ones where the sizes can be 500GB, it's obvious that the OSX boot drives will never have enough space to write that temp file on. If Parallels didn't error out every time I try to create a plain drive in the first place, then I wouldn't need the option of choosing where to write the temp files. So this is a chicken and the egg scenario. Which solution comes first that will cure the other problem.
If your external drive is firewire, put OSX on it, boot from it, and create away. Then reboot from your internal drive and enjoy your VM.