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I just put Parallels 3.0 on my Macbook Pro. During the install I chose express install and installed Windows XP. The install went fine but then I went to the Action pulldown menu and chose Parallels Tools. It installs almost 90% and then simply crashes giving me the option to reopen or close. I have completely removed the program by draging it from the Finder to the Trashcan (both the program and Windows XP Virtual Drive). It still does the same after nearly 10 installs. Any idea why it's doing this?
Have you tried reinstalling Parallels? It sounds like something goofed up during the initial installation, otherwise Tools would either install without a problem or you'd get an error message.
This may sound dumb, but have you tried installing a previous version of Parallels Desktop, then using the new package to use the upgrade feature? That may work. All I can think of.