Mine has always been this way I've had this problem since the patch where they added the miniature window views to the dock (well, around that time - thats all I remember). I've got a MacPro with 3 GB of physical. As far as I can tell, if I get physical memory too fragmented, or too much other stuff running, Parallels will no longer launch new VMs without the super slowness, and I get the same window as the one earlier in this thread. Most of the menu items are inaccessible and there is no option to open an existing VM. Parallels can only be quit by right clicking the dock icon and selecting quit there. I end up rebooting to fix it. In general, I cycle through 3-4 VMs and usually have 2 of them running at a time, all the time. Each has 400ish MB allocated to it. Paging does not seem to be too bad, unless I'm running a Visual Studio project in debug. Running World of Warcraft is an easy way to get into this memory constrained situation.