Mountain Lion running latest Parallels attempting to open a VMWare Fusion image crash

I'm running Mountain Lion with the latest version of Parallels. Parallels starts fine, but when I attempt to open a VMWare Fusion image of either of my Windows VMs, Parallels crashes every time.

Parallels is a clean install as I'm moving from VMWare after taking the Mountain Lion update. Even though I've had no success at getting a VM to run in Parallels, both VMs are listed on the Parallels' "Virtual Machine List."

I see this in the error console:

7/26/12 11:20:38.325 PM ReportCrash[5162]: Saved crash report for prl_client_app[5147] version 7.0 (15104.778994) to /Library/Logs/DiagnosticReports/prl_client_app_2012-07-26-232038_computerName-2.crash


Thanks for any help.

 

KB article indicating downgrade until fix available

See KB:
http://kb.parallels.com/en/114412