Sluggish performance and long pauses

Mac421

Bit poster
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?
 
CD access

I have tried to install software in XP when running my Boot Camp partition in Parallels. Nothing happens. The CD spins but the Windows installer never loads. If I quit Parallels and boot into Windows the install works fine.
 
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