Snapshots in 3 useless.

You can't use them with undo drives. I don't see any practical reason.

And when I turned off undo drives, it wouldn't let me create one because "graphics application that uses OpenGL or DirectX is running. Please close the application before creating snapshot."

Well, I've just started up XP and nothing is running. It's a fairly clean install and the only notable daemons running are from Parallels, here's the full list:

alg avgamsvr avgcc avgemc avgupsvc cohrence csrss ctfmon explorer Idle jusched KService lsass msdtc ParallelsToolsCenter powershell services sharedintapp smss spoolsv sqlservr svchost svchost svchost svchost svchost System toolsrv TSVNCache WindowsSearch WindowsSearchIndexer winlogon

So do I have to disable directx support to be able to use snapshots?

Snapshots, undo drives and OGL/DX support is why I upgraded to 3.0.

Looks like I wasted my money so far.

 

Unfortunately, sometimes this situation happens. But in most cases all should work.

 

That is so untrue. I just made this post and am having the same exact thing.

http://forums.parallels.com/thread12525.html

 

It turned out to be KService, something to do with Sky Broadband Video service, that was dormant (and started on startup).

I don't imagine this situation is that uncommon.