I have a MacBook and now a brand new iMac. I used to have Parallels Desktop on my MacBoook running XP, all was great, then my MacBook HDD crashed. After replacing the HDD and reloading Parallels, all the graphics come out in weird colors, blurry and the icons or buttons come out blurred and in weird colors. The remaining text and box is good and clear. I loaded XP and all I can see is a burred mess of colors that change every time I pass the cursor over the screen. Running XP is useless, you can't see anything. I thought it may be something on my MacBook, but alas no....
My brand new iMac came out exactly the same when I load parallels. I have not loaded XP yet. I allocate about 1Gb of memory. Is this something to do with graphic drivers? I can't see any downloads or useful info on the Parallels website. I wrote them for support, zero feedback. Parallels do not respond to my emails for help.

Any one have any ideas on this Parallels issue?

Should I use boot camp instead as it came with my new iMac, although I would prefer to run the two systems at the same time? That being the whole point of wanting to run two OS's