This isn't right - is it?

Since the latest upgrade Parallels has been acting oddly. Sometimes when I start it up I get a message about duplicate MAC codes and, at the moment it seems to boot up Windows XP (1) (1) rather than Windows XP. Earlier this morning it was Windows (1).

In the Mac's documents folder I have a Parallels folder that contain Windows XP (1) (1).pvm and in my Applications folder I have the following alias folders:

Windows Applications
Windows Applications for Windows XP
Windows Applications for Windows XP (1)
Windows Applications for Windows XP (1) [1]
Windows Applications for Windows XP (1) [2]
Windows Applications for Windows XP (1) [3]
Windows Applications for Windows XP (1) [4]
Windows Applications for Windows XP (1) [5]
Windows Applications for Windows XP [1]
Windows Applications for Windows XP [2]

What on earth is going on?

Mac OSX 10.6.4
Parallels 5
Build 5.0.9370