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In my case memory is definitely not the culprit. I have 6MB allocated to the VM and 14GB total. :)
Me too - Latest Parallel Desktop 5, MacPro 1,1 + Win7 64 bit VM (Boot Camp).
I'm having this problem too (Mac Pro 2006 + Win7). It's super annoying - also the audio will sometimes "freeze up" and exiting/restarting...
I read about someone having this problem because one the "Software Protection" service under Control Panel->Administrative Tools->Services became...
I'm using a Mac Pro 1,1 with Parallels 5.0.9308. Guest is Win 7 x64. It has two 30" Apple Cinema Displays attached to a Radeon x1900....