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Well, I'm going to partially answer my own question, and then ask others. Bear in mind that I'm an XP newbie: I dutifully created an XP...
OK, now it's working again. I turned off my Mac connection and turned it back on and XP works now.
Networking has also now become an issue. It was working but it stopped. I've tried switching between bridged and shared and enabled the Parallels...
I'm running parallels on a Mcbook Pro 2.33GHz Intel Core 2 Duo. When I restart XP I glimpse a message that "the system could not log you on etc...