For those that found that networking became notworking under Mountain Lion, I have found a fix. I found these lines in the Console: 25-04-12 15:24:23,833 com.apple.kextd: Can't stat /Library/Parallels/Parallels Service.app/Contents/Kexts/10.6/prl_netbridge.kext/prl_netbridge.kext/prl_netbridge.kext/prl_netbridge.kext/.../prl_netbridge.kext/Contents/CodeDirectory - Too many levels of symbolic links. 25-04-12 15:24:34,126 com.apple.kextd: Can't stat /Library/Parallels/Parallels Service.app/Contents/Kexts/10.6/prl_vnic.kext/prl_vnic.kext/prl_vnic.kext/prl_vnic.kext/prl_vnic.kext/.../prl_vnic.kext/prl_vnic.kext/Contents/CodeDirectory - Too many levels of symbolic links. So I went into /Library/Parallels/Parallels Service.app/Contents/Kexts/10.6/prl_netbridge.kext and /Library/Parallels/Parallels Service.app/Contents/Kexts/10.6/prl_vnic.kext I found they both contained a symlink, resp. prl_netbridge.kext and prl_vnic.kext, that links to the directory right above it causing an eternal loop. After removing these symlinks and a restart, Parallels Desktop 7 networking was restored.