I upgraded to Build 3036 from 1970. I had a nicely working W2K Pro VM running in 1970. This VM crashed in 3036 as soon as I got into the Windows desktop. I disabled all services (except hd and RAM) and got it to boot OK. I finally isolated the problem to the CD and network services. When either one was enabled the VM crashed. I then proceeded to create a W2K Pro VM from scratch in 3036. Things worked fine at first, but now when I try to access a CD the VM crashes. I decided to go back to build 1970. I uninstalled 3036 and reinstalled 1970. Unfortunately, my original W2K now hangs in the Starting Windows splash screen (the progress bar gets almost to the very end and just stays there). I've tried it several times, and I've also rebooted my Mac before trying again. No luck. One potential problem which might be responsible for the breakdown in the VM is that when I tried it in 3036, Parallels complained that the Parallels Tools installed on it was not compatible with 3036, so I upgraded to 3036 PT. Apparently when running the VM in 1970 it gets hung up when it tries to execute PT code. I've sent several bug reports back. I would appreciate some feedback from the Parallels team. Unfortunately, its seems that the time I've put into building my W2K partition has been lost and I have to start from scratch. I will stick with build 1970 for the time being. And I hope the next version of Parallels resolves these issues with W2K and /or the issues with Win XP activation when using the Boot Camp partition as a VM.