I have a black macbook c2d that is about a month old. Today it died. Will not boot Mac OS from DVD, Firewire, local disk or Network (apparently the Apple store has this configured). Kernel panics on a verbose boot. Here is how it happened: I was installing XP in one test Parallels VM. During the installation, I decided to make a change to my nLite configuration that I was using to install the VM, so I double clicked my alias for my other Win XP vm. A second Parallels icon began to bounce in my dock, and I noticed that MenuMeters was showing that both of my CPU's were now being pegged at 99% CPU. The dock continued to bounce for about 2 minutes. After 2 minutes, the 2nd vm began to load. The 2nd vm got to the point where it shows the black "Loading Windows XP" with the status bar at the bottom and my machine appeared to freeze. I sshed to my macbook from another machine, so I knew it was still alive, and just assumed that the screen had frozen. I proceeded to do a ps -auxwww and find the Parallels processes. I killed the process that was most recently started, but the screen didn't un-freeze. I then killed the remaining process; still frozen. I did attempted to do a hard reset by holding down the power button, but all boots after this episode only show the grey screen of death saying to hold down the power button to reboot. Apple Hardware test, extended version, said nothing was wrong. Restting power managment didn't help. Resetting PRAM didn't help. Single user mode got me to a point where I could fsck the disk; no problems there. Exiting single user mode immediately showed the kernel panic. Could not boot from a firewire clone from the previous night. The install DVD appeared to load, but only to a light blue background; nothing futher (even after leaving it for quite awhile). Apple store attempted netboot and swaping out my 3rd party ram for their ram and still had the same issue. They said it would be best to send in since they weren't sure what was wrong and might not order the right parts if it was a local fix, so then it would end up taking longer. Whatever... of course it's covered under warranty, but it's just a pain that it happened. So, I'm not sure if Parallels (v3120) contributed to my issues, but I hadn't had any issues with my macbook until today. At least it's covered under warranty. Anyone want to guess what happened?