Tried the Spotlight bit too. Didn't help. This has been bitting me since September 2011. It doesn't look like it has nothing to do with the OS (Windows 7) within the VM itself, as the slowness and 104% use goes up as soon as the image is launched, you can still see the POST going through and the whole booting process taking minutes. The VM image doesn't seem to be the problem either. I've been able to copy it to two other computers and it works there like a charm. The computer doesn't seem to be the cause (it's the first MacBook Unibody 13" - Aluminum - late 2008, with a 2.4 GHz Core 2 Duo) given that it worked for well over two years and the issue comes and goes. Other software also seems dubious, because this started happening as I upgraded to an SSD and installed a clean copy of Lion. It has taken me a while to install any other software. Things like the Spotlight issue mentioned in the previous post are more likely to be it, but so far it hasn't been properly resolved. Parallels support hasn't been of any help here. There process seems to be to go through the rigmarole of reinstalling everything from scratch through a series of emails that take the life out of one. By the time you've done them all, they simply skip following up and ignore you. It doesn't make it easier that they have the most obtuse support and ticketing system the world has ever seen (Apple-like sure it is not!). Aside from that, I've tried everything else posted in the forums, to no avail. When it happens, I have to keep the machine open for a few hours up until it is responsive again. After that, I don't close the computer for weeks at a time and all is hanky-dory. If a reboot is needed, problem comes up again, and after a few of these, it always works fine. I also thought at one point that updates would be the cause, either of Windows, Lion or Parallels, but there hasn't been any reproducible behaviour. I've been able to run the three types of updates since September with and without the issue. Right now I'm on my second hour waiting for this to be responsive. I've been bitten again In the meantime I've tried to see if any new suggestions would help. But no such luck. I hope this post does help anyone in the search for a solution. Happy New Year!