I plan on running Windows on an external drive, which will run XP. Where do I install Parallels?... On the external, or on my internal drive? Are there any caveats to doing it this way? I prefer not to have any sort of Windows stuff on my internal drive, because it will not get that much use.
The Parallels application itself MUST be installed on the startup drive. The virtual machines can be installed on any connected drive. The VM is just a set of Mac OSX files.
My Parallel application which is installed on my external USB drive works perfectly well and has since version 1970! However, I will add that my ext is format as HFS+ ajm
I think that joem's point is that there are certain files that interface with the kernel that must be on the start-up. You can have the actual application file on your external, but the actual install must be done on the start-up.
Programs are intelligent, in that they determine during an install "which" drives they can be installed to. Typical, (if not a drag and drop) during the installation process, you are given a choice of drives. Some are "green" ; some are "red". The program can be installed on ANY "green" drive. Naturally, the startup is always "green"! Where actual support files are located is an automated function. So the comment is made by joem is mute! ajm