I am running Parallels 5.0.9344. I have no problems with the XP or Vista VMs. I installed 32 bit Win 7 in an earlier version of Parallels 5 without issues. Since the 5.0.9344 update, networking has had problems. When I start I can see the network plugging away with the web icon indicating activity. Once logged in, I have local connection and internet. And then sometime along the way, the internet connectivity is lost. The troubleshooting tools in Win 7 are not able to solve the issue. This is only happening in the Win 7 VM. I am on a ethernet connection. Let me know if I can provide further information. Running Mac OS X 10.6.2 with all patches on a MBP 2.4 GHz Intel Core 2 Duo 4 GB SDRAM.
I have similar issues but usually a restart of Parallels solves the problem. So, not just reboot the VM but reboot Parallels. Keep the window open until all has loaded(don't let it start in the background, it works for me.
