VM shoud be placed in ~/Documents/Parallels
Also I've reproduced your case with Parallels Desktop 7. VM was registered for root.
I checked it in Terminal:
% prlctl list -a
% sudo prlctl list -a
Also VM has incorrect permissions. This is the reason why it couldn't be added to VM list. To fix this type in terminal:
sudo chmod -R a+rw ~/Documents/Parallels/<new_vm>.pvm
For example:
sudo chmod -R a+rw ~/Documents/Parallels/Blog\ Server\ Virtual\ Appliance.pvm
Thanks, I will report this issue.
Last edited: Apr 11, 2012