Hi Xenox,
Nope, it doesnt get as far as upgrading. I start Parallels, I goto Check for updates, windows pops down saying update found, click download, it downloads the file, window pops down saying something like would you like Parallels to install this update, click yes and I get spinning icon and Application not responding message.
Try double clicking the DMG file that downloaded with the update and I get the following message (see attached JPEG).
It doesnt like it.
Thanks