Not sure if this is related or not, but I just now tried installing the Windows 8 preview right from the Parallels Desktop menu, and it went into an infinite reboot loop. "Your PC ran into a problem". My other VMs (Windows 7, Windows XP) are running fine.
Another update: I downloaded the 11.10 iso image and tried installing that, and after the language selection it just kicks me out back to the Parallels start screen.
Update #2: I have my old MBA (2011) side by side with my new one. Ubuntu 11.10 works fine on my 2011 model. I copy the PVM file over to the new MBA, and it won't boot. One difference is I haven't updated Parallels on my OLD model (722853). I updated my new MBA to 770637. Not sure if that matters.
Last edited: Jun 15, 2012