I didn't notice that the virtual machine was running when I changed my network environment from Automatic to None (in order to preserve batteries). Actually any network change in the host os is causing Parallels Desktop to hang. The only way to resolve this is to kill Parallels Desktop (and by doing so losing all unsaved changes...) (I couldn't report this bug with standard bug-reporting as i don't use Apple Mail...)
I agree -- PW needs to be "Location" aware. Even shutting down PW and changing location will cause your shared networking and other network features to break. It really is annoying. The user should be able to switch the host network location and the PW should not care.
Still crashes in RC2 Having set network environment to "Automatic" mode and Parallel's running in Bridged mode jut runs fine (the Mac accessing internet through airport) However, swiching the environment to "None" (environment with no network connection defined in order to save battery) causes the spinball to appear, the apple logo in the menu bar remaining "highlighted" and Parallel's no longer responding. Not even the task manager of OS X will show up any more. So the only way to get out of such a situation is to power off/on the MacBook Pro :-(