Windows 7 - Disk2VHD Issue

Hi so i am currently in the process of using Disk2VHD in order to virtualize an xp environment. Once the image is captured i then go to load the vhd file within virtual pc (create new, use existing VHD, etc.). when i do this i get "Cannot attach the virtual harddisk to the virtual machine. check the value provided and try again."

I know if a vhd is above 127 GB you will receive this error. Looking at the VHD in windows explorer the file size shows as 118 GB. At this size i would think it would work but i still get the same error.

One thing i noticed, when i open up a cmd prompt and enter diskpart then attach the VHD it shows the VHD as being 298 GB(same size as the harddrive). I then resize the VHD within diskpart but the smallest it allows me to make the VHD is 149 GB.

Seems like virtual PC is seeing the VHD to be the size of the original harddrive. How can i get this to play nicely in VPC?! Any and all help is appreciated, thanks!

-Matt