Parallels 6 Fails to use Bootcamp partition (Snow Leopard)

The scenario:

1) Decided to upgrade to Win7 64bit "the right way". Completely cloned my entire Mac boot drive, wiped it out, cloned back and used Bootcamp assistant to create a bootcamp partition. Installed Win7. No problems at all. Everything is peachy.

2) Made sure Parallels was up to date and setup a new VM using the Bootcamp partition.

Parallels now completely fails to function. It fails every time I try it. I downloaded and reinstalled Parallels again from scratch and same thing.

It *appears* to finish the driver installation process and tells me it must restart in order to finish the setup, but then won't boot. It just sits there saying "Trying to boot from SATA drive 1..." forever as far as I can tell. It is using 100% of a single cpu core, but as far as I can tell nothing is actually happening. It's just sitting there. Once I waited more than 2 hours before. Nada.

Any solutions? Thanks!

 

Looking at the process again, it appears to be failing sometime during "Step 1 of 4" in the "Preparing to configure your virtual machine" process. I guess the "restart" is a necessary part of step 1.