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After extensive troubleshooting I determined that Parallels was causing my Macbook Pro to crash and I had to boot to a Leopard boot DVD to run...
downgraded to 3.0 and upgraded I downgraded the HDD to 3.0 and then ran 4.0 again it converted it back and is running great now.
Alright thanks John! Ran those steps including reinstalling the combo update 10.5.4 and that did the trick!!
So you are saying reinstall the 10.5.4 update again? It was already installed when I cloned the drive. I have plenty of hard drive space.
I am encountering the same issue. I upgraded my hard drive to 320GB and used Carbon Copy Cloner and now none of my VM's can not be memory...