I suspect it has something to do with Parallels Tools in the Guest OS not have been upgraded.
I would try to boot into safe mode and uninstall Parallels Tools, then reboot and reinstall Parallels Tools. Or if it's also running under Boot Camp I would boot it and uninstall Parallels Tools.
If neither works, I would recommend clearing Parallels information from the VM prior to booting it. And if it still fails, you probably need to do a 'Repair Install' of Windows.
Last edited by a moderator: Jun 9, 2008