Found this in the forum after the fact. After a long time trying to troubleshoot having access to only bridged networking, I stumbled across the fact that the Keyspan kernal extension conflicts the intallation of the parallels network adapters. Did not see a workaround on the web. All works well once keyspan usb server is uninstalled. Here is the link for the uninstaller:
http://www.keyspan.com/downloads-files/us4a/macosx/
Dan Vargo
http://www.keyspan.com/downloads-files/us4a/macosx/
Dan Vargo