I am running Parallels 3 (5626) with a RHEL5 (actually the free CentOS5) VM. I am unable to edit the VM memory limit from 512MB to 1024MB. When I try this I get a kernel panic when attempting to boot the VM. I can set it back to 512MB and all works fine. My Parallels memory limit is set manually to 1540MB although I get the same behavior when it is set to adjust automatically. I have 4GB on my physical machine.