I just upgraded to 3.0 and now strange things are happening. I also upgraded to Leopard, so it's possible this may be related to the new OS, too. Anyway, one symptom I'm having is the error message in the subject: "Parallels Tools require that your Windows is running under virtual machine". I also get some new hardware discovered messages when I boot into the VM, and also noticed that the screen doesn't completely fill up when I'm in full screen mode (but will if I change resolution in the Display control panel). Any ideas? Thanks!