I have build 1970 of Parallels running Windows XP without issue. I would like to install Windows 2003 R2 onto it and use it as a domain controller running Exchange 2007. I have encountered the following issues: After installing Windows, the Parallels Tools, and all Windows Updates, I run Manage Your Server and add the Domain Controller role using all defaults and selecting to install and configure DNS on the server. After the installation of the DNS service the install wizard sticks on "Waiting for DNS service to start" and counts up indefinitely. A look in the Application log indicates that sysocmgr.exe has crashed - this is the program that installs the DNS service - and DNS hasn't installed correctly in Services. Trying to open Add/Remove Components to remove/reinstall DNS results in the program hanging. DNS can be installed manually before AD is installed and seems to work correctly however. I then installed Exchange 2007 x32 Trial onto the VM, and the install process hung at the stage where it adds the Exchange services to AD at the end of the install (entire VM was unresponsive). Restarting the VM at this point resulted in a corrupt and unusable Active Directory. These problems are reproducable for me on build 1970 and the latest beta. Has anyone else encountered them?