Well, I tried again following your steps and still when 3186 boots into my XP Pro SP2 VM, it freezes about 30 seconds after it gets fully booted. I can boot into Safe mode. I've removed everything that was autostarting: Zone Alarm, AVG virus protection and TiVo Desktop. I also uninstalled Parallels Tools from the control panel. Now it only freezes when I click on Install Parallels Tools option.