XP Mode - Moving and/or merging VHDs

Despite telling the installation wizard to install XP mode to my "virtual" partition, it ended up dumping what looks to be the dynamic VHD to my C: partition (user's AppData folder). Is there any way to move it?

I'm also confused about Parent and Merging. I tried merging the VHD in AppData to the "parent" VHD (in the folder I wanted it all) but it's saying it's read only. The Help file isn't complete so RTFM is not an option.

Any insight is greatly appreciated.

Been testing for a week now, and have learned that it is basically going to be where Windows puts VXP. At least at this point I haven't been able to change its location. May be someone else may have discovered a way (Can only hope).