Ubuntu 7.10 and Parallels 5160 does NOT WORK!

Mac Pro Dual 2.4
4GB Ram
10.4.10
Parallels build 5160

Got the released Ubuntu 7.10. Verified the ISO ubuntu-7.10-desktop-i386.iso

I set up a VM:

OS Type Linux
OS Version Ubuntu Linux

Everything else defaults. Upon trying to install I get:

'The display server has been shut down about 6 times in the last 90 seconds. It is likely that something bad is going on. Waiting for 2 minutes before trying again on display :0.'

I've tried every idea I could find via google and the Parallels forum. VGA=791 Kernel parameter. Start in Safe Mode. Changing VGA mode. I am unable to exit to commandline "ALT-F1" or kill X "CTRL-ALT-BACKSPACE" when it is cycling.

I love Parallels, but as a victim of the original 3.0 release I bought VMWare Fusion to avoid the many issues I was having at the time. For kicks I tried the release Ubuntu 7.10 on Fusion and it works first time, all defaults... <ARGH>

 

Check out how I got it to work here:
http://forum.parallels.com/showthread.php?t=13837

There is something funky with Ubuntu's default video settings.