This is driving me batty. I need Parallels (preferably 3) to work smoothly with BootCamp; I don't have room on my MBP's little drive for two separate Windows installs. I've been using Parallels for about a week now, and tonight is the 3rd time it's jammed up and wrecked my system32 files. I've tried using Windows recovery console without success, so it looks like I'm facing yet another complete reinstall from SP2 on up, all 75+ windows updates and a dozen apps. Thanks to MacFUSE and NTFS-3g I have write access to my Windows partition from OS X, so if there is any alternative fix available I have the ability to try it. Unfortunately, I don't have the knowledge base to accomplish such a task.