Is the disk space for your VM Pre-allocated? if not, is 60G the size of the virtual HD or the space it actually takes up? E.g., my Win 7 VM is 111GB in virtual size but currently takes up only 42GB of actual space on my SSD.
Also, with the VM running, go to "Properties" of the C drive, run Disk Cleanup, then Clean Up System Files, and finally More Options and delete all but the most recent restore point. If you've never done that before, you'll be amazed at how much space that frees up. Finally, with the VM shut down, Clean Up Virtual Machine in the VM Library window.
With that done, how much space does the VM file actually take up?
