I started having my host OS lock up for several minutes at a time after installing Parallels Desktop 7. This even happens with no guest running. Dock, and other apps start showing beach ball. Alt-command-esc does not print up kill dialog. Fast user switching does not show login. Some windows still scroll. After a few minutes, system usually comes back to life and reacts to all my past mouse clicks. Uninstalling PD 7 clears things up. Reinstalled and uninstalled two more times with similar results. Only obviously odd thing I can see about my system is that the Mac Pro 1,1 (2007) can not boot the 64 bit kernel, only 32 bit Lion. Has any one else had success/grief with a similar 32 bit Lion configuration?