Symptoms
I have successfully upgraded my Windows virtual machines from Parallels Workstation version 2 to version 3. After running for some time all of them reported the critical error (see below) which prevents them from starting:
Resolution
This problem is caused by virus.Virus.Win32.Sality.1The other virus detected was Net-Worm.Win32.Kido virus which has most probably infected your Host Windows machine. Try to delete it with help of the following utility:
http://support.kaspersky.com/faq/?qid=208279973
Please, clean your Host and Guest machines from viruses, reinstall Parallels Workstation and ensure that they are not infected in the future.