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Parallels Desktop is unable to operate properly since it cannot communicate with one of its drivers. Try to restart the application to overcome this issue. If restart doesn't help, re-install Parallels Desktop. Note that Parallels drivers require a short time to be properly started and initialized. So you may need to wait a minute before trying to launch the application.
Add me to the group, since installing Leopard the Parallels virtual machine just hangs at the "Windows is shutting down" screen. Have uninstalled and reinstalled several times.... The VM did shut down (albeit slowly) on the initial boot of the VM but it seems that as soon as the Parallels Tools start working it refuses to shut down. I'm also getting errors relating to the Windows partition not mounting but those do not seem to affect the immediate operation of the VM.
Using Parallels 5160, with Boot Camp (XP Pro SP2) on a separate internal drive on a Mac Pro, 4 GB memory.
One more thing I've encountered. Reinstalling Parallels seems to bring things back to normal ... The first VM boot after Parallels Tools is installed loses internet connectivity. Rebooting brings back the Parallels Tools Center hang on shutdown and forces an "End Now" from the crash dialog.... Parallels is basically useless (even dangerous to use) under these conditions.