I recently bought Parallels 3 for my Core2 iMac (2.33GHz, 3GB RAM, 7600GT graphics, 7200rpm HD) and installed WinXP SP2. It's quick but I'd like to try to squeeze every bit of performance out of my hardware.
The advanced settings are set to optimize performance for the Virtual Machine and Acceleration level is set to high. System RAM is set to 512MB (optimum) and video RAM to 16MB (recommended). Tho I like Coherence mode best I think the video is slightly smoother when running Parallels in full screen mode. And finally, I've been considering converting the virtual hard drive to a plain disk.
Is there anything else I can with my setup to speed things even more?