When using the "Install OS X Lion Using the Recovery Parition" option to create a Lion VM, the resultant 64 GB drive cannot be expanded. I get an error saying "Unable to resize the last volume. The file system on that volume might be corrupted or not supported." I went through the VM setup/Lion download/install process three times in an effort to get this stupid thing to not be "corrupted," but it appears Parallels 7 simply cannot handle the virtual drive it just set up for itself. Because the setup process gives no opportunity to choose the size of the virtual drive, the only way for me to get a larger drive was to create a second virtual drive and clone everything from the first to the second. Very awkward, time consuming, and annoying. How can this software not even set up its own virtual drives properly? I am already regretting taking advantage of the cheap crossgrade offer to switch from VMWare.
I get the same error when using either the Recovery Partition or the Install Mac OS X Lion.app, did you ever find a solution?
They haven't fixed it yet. The solution I came up with is to create a second virtual drive at the size you want, clone the original one to the new one (I just ran Carbon Copy Cloner in the VM), then delete the original one.
