I would like ONE installation of Windows XP but have he option to either boot in to XP using BootCamp or be able to use PWS to access the same insttallation. Is this possible and how does one go about setting it up?
Not right now. It's not possible right now as far as I can tell. I agree, it would be the killer way to do this. Having Parallels being able to boot from an XP partition (as in Bootcamp) and having two separate hardware profiles would be amazing. Perhaps this will be a feature to come along during the BETA ?
Actually, I don't see this in the FAQ. All I see is a reference to the ability to access a physical partition from a virtual machine. It means quite a bit more to say you can boot from that partition. The difference is of course quite important. With VMWare, for example, I found it much easier to access partitions for data transfer than to get a successful dual boot/virtualization combo going.