Backup Exec 2012 P2V Question

Hi

I have two questions regarding P2V convertion.on Hyper-V

1.In the offical KB "requriments for convertion to virtual machines"there is a statemnt claming that "Only basic disks are supported. Dynamic disks are not supported". This means that in the convertion settings=>disk configuration the disk type for the VHD to be created must be "Fixed Size"?

http://www.symantec.com/business/support/index?page=content&id=HOWTO74212&profileURL=https%3A%2F%2Fsymaccount-profile.symantec.com%2FSSO%2Findex.jsp%3FssoID%3D1386067938557x32139jJN8DGL79040Q8F4ahJQMne9pPZahgW

2.I am backing up Windows Server 2003,the "C" partition is 280 Gb,the SDR backup is 29 Gb (backing up to a deduplication store).When seting the option for the virtual convertion setting in disk configuration the VHD size displays the original size the partition (280 Gb) regardles of how many free space i have on the partition.This means that i must have (280 Gb) or more free space on the destination Hyper-V server where the VHD will be created?

Thanks