I finally had some spare time to upgrade to Parallels Desktop 3.0 (4560) on my MacBook Pro 2.33. I'm using Windows XP Pro SP2. I had recently installed a fresh WinXP Pro VM since my old VM stopped working properly when something went wrong with a Parallels Tools Install. So, today I upgraded Parallels using build 4560 and it modified the VM and installed the Parallel Tools. I ran the Windows Software updater and Apple Software updater for Windows, I restarted and installed the ADS Instant Video-to-Go drivers and Converter Software. I put in the ADS USB 2.0 dongle and it was discovered by Windows. I was able to convert a 60 MB DivX video file to an iPod-ready H.264 .mp4 file in about 4 minutes using medium processor speed setting. I really was surprised it worked since it didn't using Parallels Desktop 2.X. There was a slight delay of the progress bar moving when I clicked Convert and I thought it had locked up again. It started moving in about ten seconds and all was well. So I just want to say thanks to Parallels for allowing the ADS Video converter hardware dongle to work in a VM. Pretty sweet. So far, Parallels DT 3 is working just fine for both of my WinXP Pro VMs. Just letting ADS know that their product works with Parallels 3.0.