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I was just coming back to post that I figured it out... vista installing now.. thanks guys...
the delete is greyed out... cant access it... xp is currently running
I've had problems installing vista so I gave up and used XP. Well I just got the new version 3.0 today and I used clean app and completely removed...
I tried installing vista ultimate over xp running on build 3188 of parallels. Everything was fine until it got to the upgrading part (last step)...