Upgraded to Snow Leopard (10.6.7) now Parallels won't start

I'm using Parallels Desktop.app 3.0.

After upgrading to Snow Leopard (10.6.7), when I click on Parallels it says "You can't use this version of the application Parallels Desktop.app with this version of Mac*OS*X."

Help! I've got Windows Vista running on Parallels. Is this solved by just upgrading to the latest version of Parallels? Will I lose all my documents, excel files, etc., that I've been using in Windows? Yikes!

Thanks

 

Same problem on 4.0.3522

Hey, I have the same problem on 4.0.3522.
"Unable to load the Parallels driver.
Restart your Mac and try again."
(Would be nice if that worked, actually. But the solution is apparently not that simple.)
Then it's "Unable to start the virtual machine. An unexpected error occurred while starting the virtual machine. Contact the Parallels support team for assistance."

Problem started after a software update.
Is it even remotely possible that there will be a fix? Or do they not support older versions? I'm new to Mac and parallels. In the Windows world, you're on your own after five years or so. What's it like here? How old is 4.0 anyway? Do I bail? I really do need a couple pieces of Windows software to do my work, and can't afford to wait around too long for a fix.