Parallels 4 and Boot Camp?

Two questions about Parallels 4 and Boot Camp

1) Can my Windows 7 RC 1 Boot Camp install be used directly as a Parallels VM (not converted to a VM, but used in place, so that changes made to files in Boot Camp and in Parallels are retained).

2) Between Parallels VM and Parallels Boot Camp VM, which is faster (I believe I've read that the pure VM is faster), and which is safer -- less at risk of data loss.

I ask this because last week a regular Parallels VM blew up on me and would not restart and I lost all work on that VM. I was hoping that a Boot Camp VM would be safer in that I might be able to boot into Boot Camp directly if I blew up a Parallels Boot Camp VM.

Thanks.