Leopard Security Update Kills Parallels 3 Windows VM?

[Interactive Logic]

After installing a security update pushed out by Apple today, my Parallels 3 Windows VM will no longer start (worked fine yesterday).

I just wantd to find out:

1. is this happening to anyone else?
2. anyone know what the root cause is?
3. will there be a Parallels update to fix this?

Thanks!