The Windows Activation mechanism will demand activation if Windows XP is installed in a virtual machine since the virtual machine (be it VMware or Parallels or Virtual PC) has a completely different (or new) hardware configuration from your PC. This is not a Parallels or VMware problem but a Microsoft problem. Blame Microsoft if you have to.
There is nothing Parallels could have done about it.
					 
				
			
			
			
		 
		
		
		
			
			
				Last edited: May 24, 2006