Yes. Parallels allows you to use the Bootcamp partition as a virtual machine. Create a new VM, and you will see an option to use Bootcamp as the VM disk. I believe it's described fairly well in the Parallels documentation.
The only caveat is you can't suspend, as you would a standard VM (with disk virtualized too).
When you restart your Bootcamp install natively, it will configure itself to use native hardware. When started through Parallels, it will configure itself using virtualized h/w. Also, the first time you start Bootcamp Windows through Parallels, it will automatically install drivers that Parallels needs.