I increased the disk space from 8000 MB to 24000 MB using the Image Tool, but win xp still thinks it only has 8000 MB. Any clues on how to fix this?
Please see the following thread for more information... http://forum.parallels.com/showthread.php?t=1481&highlight=resize+partition
You can't use a hard disk without setting up a partition. What happened was that the whole hard disk space (at the time) was used to create a single partition. This step clearly occurred in the setup process, but you just forgot about it.