After restarting the Vista VM by clicking onto the red shutdown icon roll bar at the bottom right hand corner of the screen, this time Vista asked for my Product Key. After entering the product key, Vista was reactivated.
Don't know if I still have an activation problem in native Boot Camp - not game to try.
Sorry for doubting my loyalty to Parallels. However, a lot of the angst could be avoided if Parallels set up a proper fault finding procedure for XP and Vista.
My comments about resolving the activation issues when switching between Boot Camp and Parallels still apply - a prompt solution is required.
Last edited: Apr 29, 2008