Oh dear. Can anyone help solve this message? Unable to allocate virtual machine memory! This error may occur mostly if there is no enough free disk space available on the physical disk to allocate virtual machine paging file. Try to clean up the physical disk (remove unnecessary files). If it doesn't help, try to re-install Parallels Desktop. It was all working fine and then this message. I've increased the size using Disk Image. I have two VMs but plenty of disk space as far as I can see. I've reinstalled build 3150 three times, deleted preferences, all the usual things. Have I lost everything? Any advice gratefully received