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Hi, I originally had the same problem. I just tried each shift key (fn, ctrl, option, splat) + F8 and eventually one of them 'worked'. Sorry that...
In any event, I believe Parallels requires OS system 10.4.6.
Regardless of whether it installs or not, it won't run since it requires DirectX. Parallels doesn't support DirectX yet. No DirectX, no 3d graphics.
Oh yeah... you have to do it in that order (Fn affects the delete key)
Hi Tim, Try Ctrl-Alt-Fn-delete John