I am using Parallels v3.4124 on a MBP 2G with a Windows XP SP2 VM. The VM has 648 Megs of ram available, and plenty of extra hard drive space. I am normally in Coherence mode. I am experiencing really sluggish behavior in the VM. I spend a lot of time in Outlook 2007, so much of my experience is there, but I don't think it's just an Outlook issue. Symptoms include periods of time where each key press take 10-15 seconds to appear, then seems to speed up for no reason. I also can experience 10-15 second waits for windows to be repainted, or if I click on a particular message in Outlook. Since the MBP doesn't have a hdd light, I can't tell if it is swapping causing the problem, but when I look in both the XP VM and in OS X Host, it appears both still have memory available. Is this normal? Are others experiencing pretty snappy performance of Outlook and other apps?