resizing XP application window crashes 3170 RC3

crm999

Bit poster
Searches of the Parallels Desktop for Mac forum has come up dry on this topic.

First, my config:
MacBook Pro
2.16 GHz Intel Core 2 Duo
2 GB 667 MHz DDR2 SDRAM
Mac OS X 10.4.8
Parallels Desktop for Mac release 3170 RC3
- running single VM
- Windows/XP in 256 MB of assigned memory

Problem:
3170 RC3 running fine. Several apps (Microsoft and 3rd party) run fine.
Maximizing or Minimizing app window works, but if I grab corner or edge of application window to custom resize it, XP crashes immediately (and reboots). The install of Windows/XP is from distribution CD that ran on a heavily used Dell Inspiron 4000 laptop for near 6 years now, and never showed this problem.

Has anyone seen this? Is there a workaround? A fix forth coming?
 
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