Sorry if this is covered in the docs -- but I sure haven't found any info yet. Does the current release fail on any system which has more than the stock Boot Camp partition? E.g., if you design for a mounted, bootable clone backup of your XP partition [NTFS or FAT32]. I set up that way and it now appears I can no longer use the wonderful Parallels Use Boot Camp" option. The VM refuses to mount with error: "More than one Windows partitions are found." I get this error even if there is only one mounted XP install, but another empty NTFS partition has been mounted. Ejecting the empty volume doesn't fix the error.
I'm having the same issue. I've found the only way to do it is to disconnect the drive (not going to work for partitions.) The error message should really read "More than one NTFS partitions are found" because it occurs on partitions that do not have Windows on it. The error message says to consult the user manual. The user manual says to consult the web site, and gives a URL, but that URL is a 404. I haven't tried this yet, but it should help: http://forum.parallels.com/thread8361.html