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I'm doing the same thing and my .pvm file is located in user/library/parallels. Should I create a folder in library and copy the .pvm file there...
Robert, I had the same questions about upgrading but took the plunge this weekend. I upgraded from P3 to P5 and then upgraded my VM from XP to...
I was able to upgrade from XP to Windows 7 this weekend. Everything went pretty smoothly. I did have to uninstall and then reinstall Tools