I have used the disc image utilty to make the hard drive bigger (from 8000 MB to 16000 MB), which has been performed with success. When I start XP however, the disc size remains the same, and I cannot install additional programs because there is not enough space on the drive. The size of the hard drive (according to XP) is the same as before the the image utility, although at the console screen, it is indeed listed at 16000 MB. Any help would be appreciated, as I need to install additional programs. Hopefully I will not have to redo the whole drive, but I should have made it larger in the first place--I guess I didn't realize what a great tool Parallels would be!!
You have to tell XP to use the space. This is no different than if you were using a physical drive. I used Partition Magic to do this. I think there are other utilities that people have talked about, which you can find if you do a search.
Note that I have not been able to use Partition Magic from the floppy, I had to install it into the VM Windows XP and run it from there. To be safe, I duplicated the drive and mounted it as drive D. Extending its partition worked fine. After I had a safe copy that worked, I tried extending the partition PM was running from - and that also worked fine! Your mileage may vary....