New Mac and now getting "Unable to Connect Hard Drive" error

I ran Parallels just fine on my old iMac.

Last weekend I got a new iMac and used Time Machine to migrate to the new Mac.

I now cannot launch my Windows VM. I get a "Unable to Connect to Hard Drive" error. I checked the permissions of the winxp.hdd file in the winxp.hdd bundle in the .pvm bundle and my user (me) is set to read and write.

As I said, it worked fine on the old Mac with no problem.

I appreciate any suggestions in how to fix this. Thanks.