Windows Product Activation Error XPSP2 - BootCamp dead.

XPSP2: Parallels,Windows Product Activation Error & BootCamp dead after Parallels 3.

I upgraded the last build of 2.5 to 3.0 (4124) on Friday. I took Parallels up and down a few times, activated the Direct X functionality, tried out a few games for kicks, etc, and it all looked good. Over the weekend I didn't need to go into Parallels or BootCamp, but come Monday it Parallels just kinda... dies... after I give it my OS X login creds. After rebooting OS X I try bootcamp and it just goes to a blank dead black screen and sits there.

I read the http://forum.parallels.com/thread11880.html if something goes wrong thread - thinking perhaps some driver got messed up if I had my laptop sleep with the parallels instance open etc and followed that process (using 4128).

Windows XP started up in Parallels! Yay!!

Windows XP error correction inserted a lot of index entries and sorted and corrected errors! Yay?

Windows XP gives me an error box title "Windows Product Activation" content "A problem is preventing windows from accurately checking the license for this computer. Error Code: 0x80070002" after logging into XP SP2. un-Yay.

BootCamp is still dead, Parallels hangs with this box. The partition itself is still accessible.

Any advice?

 

http://support.microsoft.com/kb/310794

lots of msdn articles dealing with that error, the one above was a non SQL server related one that seemed like it could have been similar. Only results for cryptography are under \HKEY_CLASSES_ROOT\CLSID\ for InProc Server and ProgId

I have a legitimate VLA license key if that makes a difference.