Glad to say it worked (and using 512MB RAM instead of 256!). I did it using a MacBook Intel Duo with Parallels 3.0. Here is how I followed your instructions, yet a little more verbose:
Before trying the rescue cd I ALT F2 on the "tried six times and the display went dead, want to try again?" in order to get a terminal window. I logged in as root and wrote:
yum update xorg
I let the magic happen and wrote:
Returned to Parallels and changed the ide:0 on the virtual hard drive to ide:1. That way, the rescue cd would boot first. Once in the terminal window I wrote:
Then I sort of fumbled around with vi until I could write the new lines (something to do with ESC and d on the keyboard allowed me to).
When I had written everything correctly, I ESC'd again in order to save and exit using
Then I wrote
and the machine was ready to change the ide:0 from the rescueCD back to ide:1 and restart Fedora 7.
I thought the resulting desktop was a bit larger than my 13" screen size, but when I selected the Parallels "Full Screen", everything was fine.
Hope this helps other newbies,
Last edited: Sep 26, 2007