Disc Utility for Parallels Prep and Memory Issue

I'm having no luck with starting threads on the Parallel's forum so here I go:
A question about configuring. I'm going to be installing Parallels 3.0 and have a Power Pro with two 500 GB internal drives. My Mac Apps and OSX are on one drive with the other one empty at the moment.
I've installed Parallels but haven't set up anything due to needing a copy of XP from our IT department. In the mean time, should I partision my second drive (currently empty) using Disk Utility or should that be left up to the Parallels installation or XP installation process?
I'm hearing elsewhere that having more than 2 GB of memory is causing problems on the Power Pro when running Parallels. Does this pertain to system memory of memory deticated to running the virtual machine?
Thanks for any help!

Parallels ultimately gives you two options…
1) Use a disk image. This is essentially like any other disk image in that it's just a file. XP installs within and operates within that file. This is what most will opt for if they have no need for a Boot Camp environment or if they have space restrictions.
2) Use a Boot Camp partition. Boot Camp…
http://www.apple.com/macosx/bootcamp/
… does in fact create a partition (else uses an entire drive) for installation and operation. The nice thing about BC is that it gives Windows your entire hardware like any other PC rather than being a virtual environment. By using a BC partition, rather than a disk image, you then have the choice of which way you wish to use Windows. For instance, if you want to play a Windows 3D game you're better off running Windows under Boot Camp. Rather, if you say want to only use Internet Explorer or Office products you can them opt for the convenience of Parallels.
The big downside to this is that you must be able to activate XP under both so in effect you need to activate twice as XP see both environments as different computers.

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