dotmike: I've been running Parallels since pre-public-beta and I can tell you that, while it's a nice tool, it's got a long way to go to be really polished and working as well as VWware. What I've seen of the Alpha builds of VMware for OS X indicates Parallels needs to get many things fixed in the next 4 months and add some major enhancements or they're going to be known as the cheaper VM software for the Mac.
Having said that, my Parallels is working on a MacBook Pro with a fully-patched XP image.
I sent salient event log entries (from the install) to the Vista team @ MS. Hopefully, they can at least tell me why the driver install is failing.
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