Hi all - Got a new iMac Core Duo 2 (2.16ghz, 20", 1GB RAM) and I'm using the newest Parallels Build (1848). When I try to open an existing Windows XP VM or even create a new one, bam - instant kernel panic every time. Let me know if you need any additional information to troubleshoot this. Thanks.
I had the same problem with the same machine, but when I downloaded build 1884 of Parallels I was able to create and start the VM. Download the new build here: http://www.parallels.com/en/download/desktop/update/
My iMac Core 2 Duo worked well with the 1884 build for two days, then went into an unending loop of kernel panics .
1884 works I got the 1884 build (thought I had the latest w/ 1848), installed, and it works OK. I've only been using it for 2 days. Hopefully, at day 3 it won't KP my machine. I'll check back in if it all goes wobbly...