VM Suspended
What it did was to save the state of your VM and then quit (the hourglass was indicating that was occurring). So from your original post, yes, it's more equivalent to hibernating your VM. When you launch Parallels again, before starting your VM, does it say "Suspended" as the state of the VM (in the VM window, just below WindowsXP or your guest type)? Also, when you restart the VM from a suspended state, the apps that were open *should* be open again after the VM resumes.
PS - this behavior as well as the behavior of the Stop and Pause buttons is controlled from the Parallels Preferences pane, under "General."
Last edited: Mar 29, 2007