I am also having this issue with Ubuntu 10.10. I had tried 10.04, but this issue cause the VM to hang during an update installation which completely corrupted the OS, so I started over with 10.10.
I'm currently trying the settings listed by friegh, I'll report the results tomorrow.
I have also tried the following to no avail:
• Set it to 1 cpu
• Set memory to 512MB and 1024MB
• Turned of Gnome (in case it was a video driver problem)
• Changed the video driver from prldriver to vesa.
• Set the video memory to 16MB
I've created a problem report [Parallels #637616] to help resolve this issue.
Mark MacVicar
After making the modifications suggested by friegh, I am still up after 4 hours. Hopefully it's not luck.
The only modifications I had to make were:
Shared Folders -> Both Items Unchecked
Services -> Sync Time with Host machine disabled
Optimization -> Adaptive Hypervisor checked
Hopefully that narrows the issue down.
Mark MacVicar