I did this by accident while setting up my new Mac. Parallels 6 closed the VM and told me that the file was "[moved or deleted]". I relocated the file for Parallels 6 and it's working fine now. My question: Is this unsafe for the machine? I don't know how Macs work and my PC administrator knowledge is non-existent. What I'm concerned about is if this created some unseen damaged files or fragments. If that's the case I'm going to restore the system to before I accidentally moved the file before closing the VM. Thanks.
I suppose, PD noticed that the VM file was not existed where it should has been, when it wanted to read/write from/to the VM file. Only your last operation hasn't been done. I think there's nothing to worry about if everything is normal after moving the file to it's old location.