Macbook lag when using Parallel Desktop

I always use Parallel Desktop since when college portal website only can be accessed by Internet Explorer, so I installed Windows Xp. The thing is it really uses a lot my RAM memory, only 20 MB of Ram is free. In Parallel Desktop configuration, I have changed the RAM slot for virtual machine, I just allocated 1064 MB Ram, and it ticked for " the best performance" or in other words I let the processor to do the adjust automatically so my Macbook can run at its best performance. I have also changed the processor in virtual machine to 2(dual-core) but still my macbook lags when I run Parallel Desktop. My HDD is 160GB and I have occupied more than of it, like 60 GB left. I have a lot of vital programs so I wonder if this thing is a major cause of this lagging problem. Any advice what should I do to speed up my macbook performance back?

If you want your Mac to run better, turn Parallels down to 1 core and bump the ram down to 512Mb. Having the RAM up high and the cores up high will allow Parallels to grab more of the resources, thus slowing down the whole computer. Limit parallels to less, you shouldn't give it 50% or more of your machine unless all you do is Window stuff.
Check your graphics config too, if your not playing games in Parallels, turn off 3D graphics and only give it 16 or 32Mb VRAM.

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