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Steps #2 and #5 are key. Simply reinstalling Parallels Tools isn't enough. Thanks Ram!
Uninstalled Parallels 7 completely. Downloaded and installed Parallels 8 trial from website. No reboot issues whatsoever. Gone. Rebooting in...
No Kaspersky So I don't have Kaspersky installed... never have (clean install). I'm still hanging on reboot. Booting in verbose mode confirms...