I am a Boot Camp user of Windows XP Pro on a MacBook Pro who has been waiting to use Parallels until it could coexist successfully with Boot Camp. I use my Windows partition for critical, business-related applications not available on my preferred Mac OS X platform. Boot Camp is solid, professionally developed and tested software that I am confident with. I would love to use a virtualized Windows on my Mac, but am not eager to get into the process of reauthorizing Windows, re-installing my Windows software on another machine, etc. until Parallels is ready for prime time.
Having said that, I am VERY disappointed with the Parallels development team for releasing as a purported beta version a piece of software that was found in the first 24 hours by users to be unable to perform its primary supposed new functions. If the main, trumpeted benefit of the new version, resulting in a SlashDot article, was that it could use a Boot Camp installation as the basis for a VM, why doesn't that even begin to work? Didn't anybody on the development team bother to try this software on a machine with Boot Camp installed from a store-bought, individual Windows XP license? Did they assume all of their users would have a corporate copy of WIndows, or one particular NTFS file system, like their development machine? Pardon me if I thought that was what "alpha" level testing was all about.
I'm afraid that Parallels has torn its britches on this little episode. It will be a long time before any serious Intel Mac user thinks about using the Parallels software as anything other than a toy. You need to come clean about this debacle, show some transparency in your release process, and rebuild your reputation, guys.