I have been trying to setup the Iphone service without any luck. Currently not using Mobile Me. The message I get every time I try to start it is Unable to start the iphone service. An error occurred while starting the iPhone service. Try to restart your MAC. If the problem persists, reinstall Parallels Desktop or contact support. Even after a boot I still get this message. Also allowed parallels in the firewall and turned it off with the same results. Sometimes I will get the message Your changes cannot be saved due to improper user session initialization. The user session was established incorrectly. Try a new session or contact support. I'm on version 5 build 5.0.9344 revision 558741 March 5, 2010.