It must have crashed. I would suggest that you don't use fixed sizes but make ones that grow. The file would only be a few K bit in size until you installed something.

It may be that you have some permission issue or maybe free cluster issue or just not enough ram or some other issue.

Thanks.
It successfully completed setting up the virtual drive and now Iḿ beginning on installing WinXP from there. Letś hope it works OK, and Iĺl post the updates.

OK, WinXP successfully installed and is working OK (even though I've not done much yet). however, the system does become a bit slow, but so-far-so-good.

I am facing one problem though. I can use the mouse in the VirtualBox window (WinXP that comes up in VB) - the pointer moves OK, but everytime I click it wants to take a snaphot. There's actually pointers in there - one is just stuck :rolleyes: