Thank you for your reply, Xenos, but I do not believe that unit 8 of known issues and workarounds adequately addresses the problem. I had run Parallels under Tiger with many other programs running, and never ran into any issues in terms of kernel panics and not having enough memory. I just installed last night the beta build for Leopard (5540, I believe) thinking that perhaps it would work better with Leopard, but that turned out to be an incorrect assumption. I attempted to run Parallels again with no other programs running, with way more than 1 GB of RAM free (I have 1 GB allocated to the VM), and the machine kernel panicked again. Before the kernel panic, I received a message saying that enough memory was not available, but in reading other posts to this forum, it seems that people have had less memory allocated to the VM and with 2GB of total RAM in their computer, and are experiencing the same problems. When can we expect a build to address these problems? I purchased Parallels specifically so I could work from home, as I have a PC at work, and the current state of affairs is rendering this impossible.