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I never had version 2, so this is speculation only. I'd back everything up (make a zip of your virtual machine). Using Parallels 2 I'd uninstall...
It does not seem to when I boot from Boot Camp, and if you check the system profiler only the non-Parallels related drivers load when you use Boot...
I've gone from version 5, to 6, to 7 so I'd say it should work. You can always back up your virtual hard disk (I often zip mine periodically and...