Anyone tried to play a DVD? I get an error message 'An unexpected error is returned by your DVD-ROM. Power DVD might not be compatible with it.' Same message with Windows Media Player.
My guess would be that PowerDVD is looking for the region control part of the DVD and that it isn't emulated by Parallels.
Nero I just installed Nero 7 and had no problems playing back DVDs. A _little_ bit choppy at times but for the most part everything worked. (windowed, not full screen)
If programs like AnyDVD can run in Parallels, then the region-lock on the Mac's superdrive/combodrive would be rendered moot...