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10% disk space free (16GB out of 160) is very low, which will slow everything down. You need to either get a bigger disk, or clean up enough to...
I'm having the same problem. "Creating snapshot" hangs, and apparently isn't doing anything significant (Activity Monitor shows zero disk...
I've installed Parallels 3 and Windows Vista, and they work fine (or well enough, performance is OK but not great, and I can't access Firewire...