Creating Smaller Virtual XP Machines:
Explanation and how-to for manual reduction in Windows images form >2 GB to under 700 MB. The commentary after the article has pointers to many sources, including:

• Invirtus, which continues to get good reviews for windows compression
• Parallels Compressor Server, a new commercial package
• A happy user of 7-zip, a free program with tight (though possibly slow) compression
• A very detailed Slimming Down Windows XP: The Complete Guide
• TinyXP by eXPerience, a VM said to compress to 120 MB and run in under 50 MB of RAM. Of limited use except in some benchmarking apps.
  

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