I had a problem where my internet access in my XP VM suddenly went out. I spent about 3 hours trying every combination of networking settings I could find and reinstalling Parallels Tools. Finally, I clicked on Start, Settings, Network Connections. I found that my network connection was set to disabled for some reason. I right clicked on the icon and clicked on Enable and that fixed the problem. It looks like a lot of people are having the same sort of problem. This is just one more thing for you to try. -Eric