I installed Lion 10.7.1 and everything went well. As I want to test the beta Lion releases, I decided (after creating a snapshot) to install the latest Lion seed, 10.7.2. After restarting the virtual machine, it stays on the Apple logo and won't start.
Ditto! I upgraded to Parallels 7 so I can run the beta software in a vm without touching my production setup, but it doesn't work. Parallels please fix this asap!