I've been doing some reading and I think the answer to the above is no -- but just to double check. I bought parallels quite some time ago, thinking Apple would introduce new computers at MacWorld '07. Then, of course, it was August. So I'm just now getting around to doing this and now there's a new version out -- that's fine, I'll upgrade. And I have Vista, as well.
My question -- it sounds like parallels has to be installed on the boot drive (in fact, I'm sure I read that on the parallels site), but I swear I've read that other people have installed it on an external, and installed Windows on the external as well. I think the thinking is that your machine is more protected from viruses (and things going wrong!), if that setup is on an external you can separate from your own machine.
My apologies if this has been covered; i didn't see it. And thanks in advance.