Separate names with a comma.
Do you use Parallels with Tiger or Leopard?
What is host CPU usage (please check it through Activity Monitor) on the message moment?
Could you say exact error message that you gave?
Could you post me what "sudo dmesg" (or whole file /var/log/system.log) tell after the error...
How much physical memory do you have?
I think more than 2 GB.
If so you need reboot your Mac Pro.
You need reboot Mac Pro one time only...
It looks like you turn on support PAE support in installation options.
E.g. option could be called like "High memory suport" or "more than 4 GB...
Is DRIVER_IRQL_NOT_LESS_OR_EQUAL first argument 0xffffffff or any valid number?
I understand driver is not shown in BSOD window. Isn't it?
Can you see what BSOD writes?
PAGE_FAULT_IN_NONPAGED_AREA or something else?
What guest driver is faulting?
Does crash occur after "Power On" in Parallels?
Or after simple application running? Do you see Parallels window before crash?
If you didn't change path in Parallels. Try to see what you have in ~/Library/Parallels.
Was Parallels running in the reboot time?
Can you specify what is the guest OS and what did the guest OS do in the reboot time?
Can you tell what is a test case of the kernel panic? What did you do to crash the Parallels?
If I understand right the kernel...
Probably your CD isn't bootable. To solve the problem you should boot from bootable DOS floppy (you can use image) and make some preparation...