Separate names with a comma.
I did get the activation key, not sure why I needed it again but when I re-activated it all my VM were gone.
Damn, I have the exact same problem!!! Had a lockup on 10.6, power cycled my iMac, ran parallels and it asked for activation keys from my upgrade...
I ran the Mac updated and it said there was updated to Parallels 6 so I installed it and rebooted and my /users/documents/parallels folder is...