This is the latest edition of the Parallels installation nightmare. I tried installing this 'update' over the previous Parallels 4.0 release. I had finally gotten that to work after several frustrating days of effort (see previous comments) This 'update' corrupted the working installation. In particular, it blew the previously working Parallels Tools out of the water. My mouse quit working again and Parallels Tools had a different install error after each attempt to get it reinstalled again. After another 2-3 hours of continual work I finally have it working again. Here is what it took to do this:

- About 30+ Windows reboots and several Mac reboots

- Several removal and reinstallation of the Microsoft PS/2 Mouse Driver

- Complete removal of the previous Parallels 4 installation and reinstallation of the update

- Reactivation of Microsoft Windows XP.

While the release notes state that they fixed the Virtual PC conversion issue, you could not validate that by my experience.

Makes you wonder if this company ever heard of Software QA or Beta Testing, much less doing it.