MorningZ,
Before attempting to limit the CPU available to VM I would try to figure why is it being used in the first place. Normally Parallels Desktop doesn't burn cycles for no reason. Setting a cap would limit system power when you need it but won't solve the root problem. Follow these steps to investigate your issue:
1. Run OS X Activity Monitor, make sure to show All Processes sorted by CPU usage and see which process is burning the CPU. Anything above 3..5% is suspect. If that process name is prl_vm_app then it actually is the VM itself. But it is well possible that something else is happening in your system. Also take note of User vs System time (red vs green) in the bottom of Activity Monitor window.
2. If most of the CPU is spent in the system space of prl_vm_app then it's interesting to see what Windows is doing. Start Windows Task Manager, select Processes tab and tick Show processes from all users checkbox at the bottom. Again, sort processes by CPU usage and see which one is on top. Further steps depend on your findings, whether that is Windows Indexer going amok, some app trapped in a loop or virus/trojan sneaked in.
3. If the above steps does not reveal anything useful, then the CPU is unlikely the cause. Get back to Activity Monitor and select Disk Activity tab at the bottom. See if there are lots of reads or writes.
It is also possible that excessive heat is generated by graphics chip, rebooting OS X might reset that.
On the other hand, high CPU use is only one possible reason for spinning fan. Other causes of excessive noise may be worn out fan bearings, clogged air path or failed temperature sensor.
Last edited: Nov 17, 2011