I'm experiencing a very weird problem which started a couple of weeks ago. I noticed that my VM was increasing in size alarmingly (around 20GB per day!) and upon viewing the package contents I saw that there were a multitude of conflict log files, each one exactly 54.4MB in size. They dated back over the previous month. I deleted them all but found that within minutes more conflict log files were being generated. I reported the issue to support, who suggested the following: Uninstall Parallels 5 Repair disk permissions (do this three times) Install Parallels 5 Uninstall and reinstall Tools. There were reboots in between all the steps above. After I did this the issue seemed resolved and no further conflict log files were generated. However, yesterday I rebooted my machine (Macbook Pro) for the first time in a few days and upon restarting Parallels found that the issue had returned, and once again these conflict files are being generated, still at 54.4MB each. I've reported this to support and am awaiting a response. Meanwhile has anyone else experienced this issue? I'm assuming that Parallels is conflicting with something else in my system but I don't know what. For the record, I'm on the latest build of version 5 with an XP Professional VM. Would upgrading to version 6 help?