After no real help from Parallels Support (they just got back to me after I opened a ticket two months ago), I had to search look for a fix to the hal.dll error. Here are the steps that I used to fix it: 1. Launch Macintosh HD - Applications - Utilities - Boot Camp Assistant 2. Choose to "Start Windows Installation" 3. Insert and boot from your Windows XP CD. 4. At the first R=Repair option, press the R key 5. Press the number that corresponds to the correct location for the installation of Windows you want to repair. 6. Type bootcfg /list to show the current entries in the BOOT.INI file 7. Type bootcfg /rebuild to repair it 8. Take out the CD ROM and type exit The challenge I found was that there was no bios where I can control where to boot from (cd vs. hd). I got lucky and it booted to the cd. But this took me several tries and I don't remember the steps on how I got it to work. It didn't take long to fix and I did not have to reinstall Parallels or WinXP. My hal.dll got corrupted when I installed an early version of 3.0. After I was able to repair the HAL.dll error, I installed version 3.0 build 4560 and I have no errors to date.