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I've seen this problem being discussed recently in several MS-related forums & also experienced it myself. I believe the cause is a particularly vicious piece of malware called Smitfraud, which tries to simulate a BSOD & then offer you the opportunity of "fixing" it with their software if you...

There's a new site called InstaLinux that lets you install Linux over the Internet using its web interface to choose which distro you want. They say it works with VMWare if you install an empty partition they give you first, so I'm guessing it should work with Parallels too. I won't have time...