Parallels updated fine. Windows 7 started but then got black startup screen telling me there was a problem and then went through 5 mins of 'Trying to solve problem' which failed. But re boot of Windows 7 solves problem, so don't panic. Tools upgraded without a hitch. XP opened as normal and Tools upgraded without any problems, which was a relief as this has caused problems in XP in the past. Now to find out if this version is an improvement. BK