Can't start any VMs in WinXP. "Access is Denied"

[TrashCat]

I get the following error when try to start VMs on my windows machine:

"Error occurred while trying to interact with Parallels driver! Parallels Workstation is either not installed or/and configured or has integrity problems, which prevent it from operating properly.
Please reinstall the Parallels Workstation.
Additional error information reported by the primary operating system: (0x5) Access is denied."

I tried removing every single device from my VM Config except for: Memory 256MB, Video, Shared Folders, and the default Options entry. It still will not start up even after removing everything.

My system:
Athlon XP 3200+
Asus A7N8X-Deluxe Motherboard (nForce2 chipset)
1 GB RAM
76GB SATA drive
nVidia GeForce 6600GT AGP

All of the drivers are up to date (I just updated them all). The only thing strange I notice is my Device Manager shows 4 yellow question marks (3 x Multimedia Controller, 1 x Multimedia Video Controller). Each one says "The drivers for this device are not installed" when i view its details.

I already tried uninstalling and reinstalling Parallels, but had no luck with that. Does anyone have any idea what this could be?

 

[xLP]

I have exactly the same problem. I thought about some system protection from my antivirus, so I disabled it. I have no HIPS at the moment, so nothing should interefere...

 

[mesofly]

Hi, can we get a little more feed back on the problem? I've read through all the faq's and searched all of google. I'm sure my problem does not have to do with multiple instances of parallels being installed. I've tried pretty much everything and still have the same problem.

 

[Audioslave]

I just got the same message. I have been running Parallels withou problems on Leopard for a few days, but then I get this "Error occurred while trying to interact with Parallels driver! Parallels Desktop is either not installed or/and configured or has integrity problems, which prevent it from operating properly. Please reinstall the Parallels Desktop." I havent changed anything, dont know why this happens. I need this fixed ASAP, anybody know how?