Ugh! This is one really annoying problem. Start up Parallels, click resume button to get VM restarted, I get this message. No apparent reason. Happens with 1970 and all the beta and RC candidates afterwards. Makes Parallels pretty much useless, AFAIC. I *think* if I log out and back in it works again...certainly works after reboots. At first I thought is was only with the betas, then I backed up to 1970 and it exhibits the same problem. I would be more than happy to work with someone on this directly!