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Thanks for the help Eru. I'm new to the Mac World and not sure how to find these files (*.psv and *.hdd). I did a search which came up empty....
Since my first post above, I've learned more about the problem. As above in my first message, I DID uninstall Parallels and then reinstalled the...
Today I received and installed Parallels 3.0 without a hitch. Then I made a big mistake by trying to install an OEM Windows Vista OS. The system...