Failed to convert parallels 3.0 VM into 5.0 Hi I am having exactly the same problem as Markus: I had been running Parallels 3.0 in Mac 10.4 without issue. I upgraded to Mac OS 10.6 and Parallels 5.0 When I try to convert the backed up winxp.hdd I get the message: "Failed to convert the virtual machine. The virtual machine could not be converted to the new format." I tried the suggested solution from I-che to Markus, but got the same result as he did: I did as suggested, just the important step 6. does not work: 'Parallels > New > Choose image file' looks for *.iso, *.dmg or *.cdr; but not *.hdd 'Parallels > Open' requests a *.pvs file; *.hdd is not accepted 'Parallels > New > Skip Detection > Version=XP > Custom > Existing Image File > creating the virtual machine... The Vm has no OS, Please install it. => Image file as well only iso, dmg or cdr. Any help would be greatly appreciated.