Me Too!!!
Ok, so a me too post isn't the best way to start, but if someone can spot the commonality it _might_ help.
I'm running 10.5.2 on a rev 2 macbook (core duo) with 2gig ram. Parallels build 5160, and Centos 5.1 (2.6.18-53-18)
When I first did my install I gave the guest OS 1024M ram, and it installed fine, but failed to boot. It would start booting, kernel panic, and reboot ad-infinitum. Lowering the ram to 512M allowed it to boot, but shortly afterwards one of my cpu's would peg (activity monitor says it's parallels), and the guest OS would hang.
Right now Centos IS running under Parallels, but with networking disabled (Parallels doesn't seem to recognize my SMC usb-ethernet, I'm pretty sure it DID yesterday!).
any clues?
-nigel