I would advise users NOT to upgrade to the latest version of Parallels as following the upgrade and a restart, my Macbook now has some kind of kernel extension which prevents it from launching Mac OS X. I am able to log into it only in single user (command line) mode. The last diagnostic message which the Macbook reports before hanging is a Parallels VM Observer registering. Following a reinstall of Parallels, I loaded a DVD to view using Windows. Whilst loading this DVD, the Parallels Tools Installer triggered itself (I guess it realised it was out of date with the version of Parallels). The Windows VM and Parallels then hung permanently. I waited for about 20 minutes or so, then force quit. Future attempts to relaunch parallels after the force quit triggered an error, and nothing launched. Finally after a reboot I have now lost Mac OS X altogether. I would like to know how to prevent Parallels' buggy kernel extension from loading using a command from single user mode or some other diagnostic mode, as this will give me my machine back. I can live without Windows. I can't live without Mac OS.
Update - still no Mac OS I've tried following the advice to remove kernel extensions and preferences as suggested here... http://forum.parallels.com/showthread.php?t=20083 ...alongside the more general instructions here to clear out kernel caches etc... http://www.macfixit.com/article.php?story=20060322080433175 ...but nothing yet. Trying fsck from single user mode in case it's nothing to do with Parallels, but it's still the most suspicious given the failure mode. I wonder if there's another kernel extension which isn't listed in the original instructions (for example Pvsvnic.kext wasn't there, I guess kernel details have probably changed)
Still no joy Thanks for reply, Specimen. Most of the article's advice is impossible for me to follow, as I can't launch a windowing environment at all (though maybe can launch Disk Utility from a repair disk which I will try). The list of files to force remove is useful in that article though. Sadly I've already removed all of these. It makes me wonder what else could possibly be going on here. To my knowledge I've removed every part of Parallels which could launch on boot. However, I'm still not even reaching the login screen. Unless there's another Parallels item which isn't listed in the article you linked (and which is still lurking at boot) then it really can't be Parallels which is causing the problem. I suppose there's always the possibility it's just a very weird coincidence that the Parallels Tools Installer autoload and some kind of major hardware failure took place at exactly the same moment.
Article enumerates Parallels Desktop items completely, I suggest you to try fsck in Single mode and check free spaces on Mac disk see details in http://support.apple.com/kb/TS1417 also try to check free space df and search for line something as /dev/disk0s2 if there is available less then 500 mb , try to free some spaces Also less /private/var/log/system.log can give you some clue
start the parallel, in windows upper right click "setting" then "advanced "and I drop down choose apple, restart windows
Correction: start the parallel, in windows click "setting" , "hardware tab: then "advanced "and in drop down choose apple. It worked for me.