..> Open Virtual PC Console (Do Not Load any VHD's) ..> Select your Virtual PC in the console and choose settings. ..> Select Harddisk of choice ..> Select Virtual Disk Wizard ..> Select Next ..> Select Edit an existing virtual disk ..> Select Virtual Disk to Edit ..> Select Next ..> Select Compact It ..> Selelct Replacing the current file ..> Select Next ..> Select Finish The above compacts your virtual disk to the size of actual data on the virtual drive. The way I get specific sizes is to copy a file or files that equate to the size I want to the virtual disk, compact and delete extra files. Kinda cheesy but it works