I placed an earlier reply to someone's review about the BSOD. I had the same problem. I contacted Parallels Tech Support via their website. Within two hours, I got the following reply:

Try using solution for problem with BSOD on PD4 -> PD5 upgrade described in Knowledgebase article http://kb.parallels.com/en/6873.

Let us know if that would help to resolve the issue or not.

I did what the KB article said and all is working fine. It seems that it's an issue with dual processor machines where the Guest OS is set to use 2 processors. Once I changed it to one processor and restarted Windows, it worked fine. I could then change it back to two processors.

All is right with the world.