If you find that the capacity of your virtual machine's hard disk does not fit your needs anymore, you can increase it using Parallels Image Tool.
To increase the capacity of the virtual hard disk:
.hddextension in the Source Virtual Disk window. You may type the path and file name or use the Choose button to locate the file. The virtual hard disk image file can be found inside the virtual machine's PVM bundle. PVM bundles are stored by default:
/<Username>/Documents/Parallels/folder in Mac OS X.
C:\Documents and Settings\<Username>\My Documents\Parallels\folder in the Windows primary OS.
/<username>/parallelsdirectory in the Linux primary OS.
Note: The virtual machine using this virtual hard disk should be stopped before proceeding.
Note: If you choose a hard disk used by a virtual machine that has snapshots, all snapshots, except the last one, will be deleted.
To start the process of increasing the disk capacity, click Start. You can view the operation progress in the Processing the File window. Clicking Cancel terminates the operation.
Note: If the virtual hard disk image file you specified is in the old format, it will be automatically converted to the new format.
Please send us your feedback on this help page