I was wondering is it is possible to create a new virtual image runnings Windows 7, and have Parallels import everything from a Parallels Windows XP image. Both the new and the old image are on the same Macbook. Thanks.
Parallels won't do it. Use the methods described at http://windows.microsoft.com/en-CA/windows7/help/upgrading-from-windows-xp-to-windows-7 You can connect the Windows XP virtual machine's hard disk to the new Windows 7 virtual machine. Just press + in the Hardware tab, add a Hard Disk 2, choose an existing image, go inside the Windows XP .pvm and select the .hdd there.