Stuck on Grey Screen after Lion 10.7.2 update

Hi All,
I updated lion from 10.7.1 to 10.7.2 today on Parallels 7 and once it restarts. It gets stuck on Grey screen and fails to more forward.

Anyone else encountered this. Any solution, i cant think of anything.

Many thanks in advance.

 

Same here! Lion won't start anymore.

 

I updated to the latest Parallels build (7.0.14924) and now it works. But support told me that you have to run Lion as a host to be able to run Lion as guest in Parallels. Snow leo as a host and lion as guest is not supported.