I haven't had any issues using Ubuntu 7.10 Gutsy Gibbon. I installed it from a Beta disk about a week ago, and have had little issue. Parallel tools installed fine, and had no X-Server issues. On a couple of times though, when I would boot GDM would complain about Desktop Settings failing to start. Rebooting the system would fix it though. Don't know what to say....I have had very little issues with Parallels, period. Windows, Linux, Solaris have always worked fine for me.
I would say try again with the latest disk from ubuntu.com. They are now on Release Candidates so it should be even more stable. Could have been an issue with Ubuntu and not Parallels, you never know.
EDIT: I should note that I used the Alternative cd instead of the live boot cd. I prefer the alternative because I have more control over partitioning. And it is faster because your not running a whole operating system while installing.
Last edited: Oct 16, 2007