How to accomplish this upgrade--is this a delete all of Parallels and install the new build, or is it simpler than that? I'm using a VM migrated by 2.5 from VMWare to Parallels. Thanks--
Just install with the installer, restart, it will ask you for your 3.0 license key, type that in, install the new tools when you boot for the first time, and you should be good to go.
If you think you will ever return to 2.5 (3.0 is not free) you must make a backup of your shut down virtual machine(s). The 3.0 version will modify them in a way that makes going back impossible. If you think you will be upgrading your OS to Leopard when it's released then you should consider upgrading Parallels.
I did the upgrade ad two things are problems now-- 1. It takes maybe 90 seconds or 2 minutes to start windows XP 2. In Win XP the DVD reader on my Macbook is not recognized. Sound familiar? Any hints?