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If a Windows 7 Virtual PC (guest OS instance) is allocated a specific amount of RAM, let's say 2GB, is most or all of that RAM released whenever the virtual pc is hibernated?

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If the virtual PC is hibernated by the host computer (also called "save state" or similiar), its RAM will completely be freed. If you close the virtualization software, no remainders of virtualization or the virtualized software will be in main memory any more until you reload the guest instance, which will be continued as if hibernated.

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tl dr version: Zero. – surfasb Nov 5 '11 at 22:36

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