Upgrade from version 3 doesn't work

I'm another user stuck with migrating my VM from version 3.

When I try to convert VM, it stalls at phase 2. I used ctrl-alt-cmd-r combo, but after restarting Windows I get several messages about not being able to run rundll32.exe library. After that I see a blue screen (not BSOD). I also tried to safe boot Windows (F8 key), but in this case Windows switches between two screens (loading user settings and saving user settings).

Do you have any idea what I can do? I really need to get up and running today.

I tried to create a support ticket, but I didn't get a confirmation email

I have a MBP with 4 GB RAM, Snow Leopard and Windows XP

 

I resolved the problem partially by copying Windows folder from a workig copy of VM version 3. Now I can start Windows, but I cannot install Parallel Tools. I get a message that Windows Installer service is not working, but I cannot start it manually. Any help?