I purchased and installed 4.0 today. The upgrade of the first XP virtual PC went very slowly. The installation of Parallel tools was awful. Several reboots and it created it's own userid. The second Virtual XP system ( I have several) broke the XP system. After the update XP decided that the hardware had changed and invalidated the XP license. I have had this happen under 3.0 if I start another system first and it takes the virtual CD. The solution is to shut down all Virtual systems, roll back XP to the last save point and restart. With the upgrade to 4.0 there was no place to roll back to and the CD wasn't the cause. Since I need that virtual system, I ended up removing 4.0. Restoring the virtual XP system using TimeMachine and everything is back to normal. I think I'll wait a while before I try this again. I kept the one successful conversion. I hope the upgrade to the next version of parallel tools doesn't take an hour to install. It did today. My System is a 2.33 GHz MacBook Pro with 3 Gbytes of ram. Sculler
I believe, that build you were using was not 3540, or security software prevented to install Parallels TOols