This is actually in response to the following thread: http://forum.parallels.com/showthread.php?t=8867 which is no longer accepting new posts (since it has been archived). However, given the amount of time I spent dealing with this issue, I thought it worthwhile to post something here in case anyone else runs into the same situation. The situation: I'm on Parallels 3.0 Build 5582 under Leopard and I experienced similar issues with Netflix Watch Now: Jerky video, and the audio would cut in and cut out every few seconds. The solution (in my case, at least): After several hours of trying a number of different things without success, I decided on a hunch to try disabling Intel VT-x support under the VM settings. And that fixed it for me. Netflix video and audio now play perfectly. I'm not sure why disabling VT-x support cleared up the problem. I'll investigate that as well at some point.
Interesting. I am on 2.5 build 3214 and Netflix Watch Now works flawlessly without any tweaking. I am glad your fixed worked. But did you look at RAM settings or check bandwidth usage?
wow... I've been having problems with NetFlix since I upgraded to 3.0... this (disabling VT-x support) solved it for me!
this has fixed the same problem for me, using the latest build (5584). i don't know if i'm taking a performance hit, but right now netflix is about all i use my VM for.
