Gray screen as well
Sorry, this won't answer the first posters question but here is some details after getting the gray screen and rebooting:
panic(cpu 1 caller 0x001A4A55): Unresolved kernel trap (CPU 1, Type 27=Unknown), registers:
CR0: 0x8001003b, CR2: 0x3be180a0, CR3: 0x00e95000, CR4: 0x000006e0
EAX: 0x00000001, EBX: 0x6d626572, ECX: 0x00000000, EDX: 0x00000000
CR2: 0x3be180a0, EBP: 0x2507b970, ESI: 0x6d616769, EDI: 0x63216e75
EFL: 0x00000246, EIP: 0x3be180f2, CS: 0x00000008, DS: 0x00000010
Backtrace, Format - Frame : Return Address (4 potential args on stack)
0x2507b6e8 : 0x128d08 (0x3cc0a4 0x2507b70c 0x131de5 0x0)
0x2507b728 : 0x1a4a55 (0x3d24b8 0x1 0x1b 0x3cb56c)
0x2507b838 : 0x19aeb4 (0x2507b850 0x0 0x13c9f3c 0x0)
0x2507b970 : 0x3be177a6 (0x3bad6000 0x4847c04 0x4b6d784 0x2507beb8)
0x2507baa8 : 0x9f1843 (0x2507beb8 0x0 0x0 0x9ef2c8)
0x2507bb18 : 0x9f1ad0 (0x4b6d784 0x2507beb8 0x600000 0x1992a3)
0x2507bbd8 : 0x9f22de (0x4b6d784 0x2507beb8 0x18 0x0)
0x2507bd38 : 0x9ee959 (0x4b6d784 0xc0185401 0x2507beb8 0x19e23a)
0x2507bd68 : 0x1f1668 (0xd000000 0xc0185401 0x2507beb8 0x81)
0x2507bda8 : 0x1e84a2 (0x2507bdd0 0x297 0x2507be08 0x411d000)
0x2507be08 : 0x1e02a3 (0x4186e70 0xc0185401 0x2507beb8 0x81)
0x2507be58 : 0x332ac8 (0x4905a80 0xc0185401 0x2507beb8 0x411d000)
0x2507be88 : 0x350e24 (0x4905a80 0xc0185401 0x2507beb8 0x411d000)
0x2507bf58 : 0x37ad83 (0x411d000 0x4854500 0x4854544 0x0)
0x2507bfc8 : 0x19b28e (0x484fb20 0x0 0x19e0b5 0x45bba98) No mapping exists for frame pointer
Backtrace terminated-invalid frame pointer 0xbfffdf18
Kernel loadable modules in backtrace (with dependencies):
com.parallels.kext.vmmain(2.2)@0x9ed000
Kernel version:
Darwin Kernel Version 8.10.1: Wed May 23 16:33:00 PDT 2007; root:xnu-792.22.5~1/RELEASE_I386
Model: MacBookPro2,2, BootROM MBP22.00A5.B02, 2 processors, Intel Core 2 Duo, 2.33 GHz, 2 GB
Graphics: ATI Radeon X1600, ATY,RadeonX1600, PCIe, 256 MB
Memory Module: BANK 0/DIMM0, 1 GB, DDR2 SDRAM, 667 MHz
Memory Module: BANK 1/DIMM1, 1 GB, DDR2 SDRAM, 667 MHz
AirPort: spairport_wireless_card_type_airport_extreme (0x168C, 0x87), 1.1.8.5
Bluetooth: Version 1.9.0f8, 2 service, 1 devices, 1 incoming serial ports
Network Service: AirPort, AirPort, en1
Network Service: Parallels Host-Guest, Ethernet, en2
Network Service: Parallels NAT, Ethernet, en3
Serial ATA Device: Hitachi HTS541616J9SA00, 149.05 GB
Parallel ATA Device: MATSHITADVD-R UJ-857D
USB Device: Built-in iSight, Micron, Up to 480 Mb/sec, 500 mA
USB Device: IR Receiver, Apple Computer, Inc., Up to 12 Mb/sec, 500 mA
USB Device: Bluetooth USB Host Controller, Apple, Inc., Up to 12 Mb/sec, 500 mA
USB Device: Apple Internal Keyboard / Trackpad, Apple Computer, Up to 12 Mb/sec, 500 mA
I let the error go to Apple as well but figured the real problem was likely a bug in Parallels.
Rick