When I attempt to open a second VM, Parallels RC3 gives me the virtual machine memory error, no matter what OS types and sequence of opening. The machines I open all have at least 1 GB of memory assigned to each. My Mac has 6 GB system memory and many GB of free space on all physical drives. Adjusting the reserved memory setting in the Parallels preferences does not help.
I only have 2gb for the MacBook Pro but i find less is more try using 500 to 750 mb for each VM 1gb VM don't do well on this machine the smaller VM actually run faster they use 2.2 gb virtual memory Hugh W