Mac Parallels Disk Image Bloat, Error Compressing

I occasionally use Pararelles on my Mac. For example, to update my Windows Mobile Phone etc., that can only done on Windows. I have found out though that the disk image gets significantly bigger over time. There is an option to squeeze the disk, but that option did not run when I tried. I looked around on the net for the answer. I am jotting this down here so that I won't forget.

Snipped from this source: http://forum.parallels.com/showthread.php?t=138121.

Open Parallels and start windows 

2. go to the Actions menu and click on Create Snapshot
3. In the snapshot window just click the OK Button

4. Shut down windows using the shutdown feature in windows
5. Turn off Parallels 

6. Go to Applications/Parallels and open Parallels Image Tool 
7. Click Continue on the Introduction Page 
8. Click Choose on the source image page. 
9. Select your HDD 
10. Click Continue

11. Select Manage disk Properties in the action screen, Click continue 
12. In the Operations screen put a checkmark in the Merge snapshots item only. And click the Start button. 
13. A warning Message will drop down, Click Yes 
14. The Image tool will start to process your HDD this can take a long time be patient 
15. When The process completes click finish 

Next boot the VM:
It is normal for this to take a little longer than usual.

Finally Run Disc Compressor:

18. Go to Actions on the toolbar and select Run Parallels Copressor...... 
19. A dropdown menu will appear with a message on it click ok 
20. A countdown will begin, allow it to start automatically 
21. The Compressor will start the first set of operations this can take some time. 
22. After the first operations have completed Click on the restart button 
23. After the restart the next set of operations will start again this will take some time to complete. When the compression is completed the compacting of the disk will begin automatically. This can take hours to complete. Do not interrupt it, suspend your Mac or put it into sleep mode during this process. 
24. When Compacting is completed click on the OK button. 
25. Click Finish on the Compressor Window. 

Clean Up
26. Go to the Macintosh HD/Users/”your user name”/documents/parallels/”your virtual machine”/ and delete the Snapshots folder and the Snapshots.xml