Having trouble creating VMWare image from physical machine - memory being restricted to 880MB

"You can't allocate more then 70% of physical memory to a virtual machine. Virtual Machine managers will give a warning since this will not leave enough physical memory for the host machine to run.

Virtual Machines are only allocated physical memory.

PS: The 70% I can't confirm at the moment but this has been my experience with most virtual machine managers. Hyper-V allows 80% on HyperVisor but only 60% when running on a full version of Server 2008. Others only allow up to 50% for example.

In your case the VM itself will be created as if you will be running it on the same machine acting as host.

Edit: The VM can still be created using the specified memory size. It is a warning only that the virtual machine may not run on that particular machine. I am not sure if this has changed in the newer VMWare converter."