I can't make any sense out of what you've said
You've created a single 8GB VM
Then removed XP and Win7 from REAL partitions ?
Then you say "both Hd's are reporting as full" .. which hard drives .. and do you mean REAL drives , REAL partitions, or virtual drives ?
I also have to sat .. Huh ? .. to this:-
Also, is it a 'virtual' size or a real size that takes up 'real' size of my Hd?
Sorry, but I have no idea what you're trying to say/ask.