I have a new iMac with 2Gb memory aand tons of disk space. I have just tried installing Parallels per the insructions in the Quick Start Guide. Following the instructions, I installed Parallels, activated it, created a "typical" VM for Windows XP. I selected CD/DVD-ROM 1 link and made sure Enable and connect at startup were selected... and saved the configuration. In Step 6, it said to choose Default CD/DVD-Rom from the Devices Menu... however, not only were all items in the menu grayed out, but there was not Default CD/DVD-ROM in the menu... there were other CD/DVD-ROM entries listed but they were grayed out. Never-the-less, I then put my Windows disk in the drive and Powered on the VM... this crashed my iMac requiring a complete reboot. I tried this also without the windows CD in the drive with the same results?