With the new beta 3120 of Parallels, now you can activate your Boot Camp Windows XP partition, boot it under Parallels, reactivate once and you can use Windows both natively and under Parallels. But what about other softwares requiring software activation such as Microsoft Office 2003/2007 and Adobe Photoshop CS2? In the case of Microsoft Office, it appears that the activation is also tied to the hardware of the computer so if you activate it once under Boot Camp, then boot Windows in Parallels and run Office again you will be required to reactivate. Even if this reactivation is granted you probably will be asked to reactivate again when you boot Windows natively and run Office again. Judging from the posts it appears that somebody already is suffering from this problem. The activation in the software is just a severe handicap to legitimate users. If you are using a pirated (Corporate) version of Windows XP and Microsoft Office 2003, then I bet you won't have to reactivate at all since the activation is not present. Will Parallels be able to tackle this problem? For my part, I am using Windows 2000 and a Corporate version of Windows XP on my Macbook in Parallels. I don't use Boot Camp and only use Office 2000 if I have to (mostly I use OpenOffice). No activation issues for me. I will avoid any new Microsoft software such as Vista and Office 2007, since Microsoft softwares nowadays are nearly all infested with this activation. Likewise with any other softwares that require activation.