everything appeared to be going beautifully. The last thing I did in Windows XP, under Parallels, was to run Windows update and hit Restart. I made the mistake of walking away from the MBP. I came back and it looked like the MBP had restarted since no applications were running, which was odd. Parallels then could not open Windows because the drive had disappeared (i.e. users/username/library/parallels/ was an empty folder) I tried to reboot OS X, but it hung during boot (I tried about 10 times). Oddly, Bootcamp Windows XP booted without any problem. I booted off the OS X install CD and ran repair disk from Disk Utility. I found many errors (e.g.catalog hierarchy, volume bitmap, volume information, volume count and more). It repaired some, but exited with an error saying that the volume couldn't be repaired. After reboot off of the CD and running disk repair, a couple of more time it finally fixed everything and reported a clean bill of health. The Parallels disk image is still gone though. And Parallels itself gives and error about vm-main module not being found. It's a good thing this is a new Mac and has very little data/application on it yet.