I updated to build 5060 and tried to open my suspended XP VM (4560). Had an immediate kernel panic. NOT very nice!! After the restart, back in Parallels, I was informed that my XP virtual machine was corrupted. My backup VM had been saved in a shutdown state, fortunately. It stated up fine and the updated Parallels Tools installed successfully. Everything seems to be working well at the moment. I suspect that trying to open the suspended XP VM may have been the problem, although I have not had a similar problem before after a Parallels update. My iMac is running 10.4.10
MrMacHead, Thank you for reporting. Indeed, running the VM suspended in the previous version can cause some problems after updating (especially to Beta version). We will try to re-produce this case in-house and fix it.