- Launch the Parallels application.

- From the Parallels menu bar, select File > New VM.

- Click Next.

- Select Create a customer VM configuration then click Next.

- Select your Guest OS Type (e.g. Windows) and your Guest OS Version (e.g. Windows XP) then click Next.

- Specify the amount of memory you wish to allocate to the virtual machine then click Next.

- Ensure that Create a new virtual hard disk is selected then click Next.

- Specify the desired virtual disk size (e.g. 8000 MB approximately 7.8 GB). Select the desired disk format (e.g. Plain) then click Next.
- Expanding disk format will be small initially but will grow as you add more data to the virtual machine.
- Plan disk format will consume all of the allocated space from the beginning but it will allow the guest OS to operate faster.

- Specify a location for the disk image then click Next.

- Click Yes.

- Ensure that Bridged Ethernet is selected then click Next.

- Ensure that Default Adapter and Connect cable at startup is selected then click Next.

- Type the name for the virtual machine. Specify a location for the configuration file then click Finish.

- You have successfully created a virtual machine.
