This hint will put your Entourage 2004 database on a sparse bundle, which Time Machine knows how to use for a true incremental backup. I am using this for Entourage, but it will probably work OK with Paralells' or VMware's virtual machines, too -- I just don't know about the speed issue.
Sorry, much of this is kind of advanced, but if you don't understand what you are doing here, you are probably better off not using this method. If something goes wrong after an update, you will have a hard time figuring out what happened, and getting to your email. This is not a hint for those with only a basic knowledge of the system...
Basically this is how I made a Sparse Bundle mount to an odd mount point on system boot. I am going to use my Entourage installation as an example, and I'm not going to explain every step in the ultimate low-level of detail, so watch what you are doin...