I'm looking at the Growl notifications list for Parallels Desktop and all it says is "Parallels Desktop." What notifications are set by default?
I deleted the Parallels Growl app (in Growl preferences) when I was debugging the upgrade issue and fresh install process. I haven't restored that, but remember being surprised that it showed up in within Growl in the first place. It hasn't shown up in subsequent V3 and latest V4 installs. Before I did uninstall it, it put up notification windows for various tasks being performed in the Parallels VM such as file copies, downloads, and updates, IIRC.