When Boot Camp arrived, I was like, WOW. I can use Windows on my Mac.
When Parallels arrived, I was like, WOW. I can use Windows on my Mac at the same time.
I'm not sure I get it much anymore though. I have one program that seems it will never move to Mac (Versacheck), and some files I'd like to archive as pdf's from Win software I no longer use <cough>Quark<cough>, so I tried the Fusion Beta this morning.
Yes, it takes forever to install. Even without debugging there's a bothersome lag. Fusion takes forever to start, requires my admin password, and has thrown me into BSOD after refusing to close. I can't set a Mac file to default open in a Windows program in Fusion (this would be the coolest feature I would like), so there's an unnecessary amount of hunting around required to do anything. Sure, seeing Windows Explorer on my Leopard desktop is a thrill for about 30 seconds, but the "Your computer may be at risk" "Do you want to activate Windows again?" popups--not so much.
If I want to use "real Windows," I can use Boot Camp. I'm even needing Versacheck less and less--who writes checks these days? Invest another $80 in a World of Windows? Parallels/Fusion is a nifty idea, but maybe just not that useful for my needs after all--I'll file it away with other novelties like Evernote... and GM's EV1.
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Sounds like you have other problems with your Mac, I have none of the issue you describe, Fusion runs flawlessly. I certainly don't get any BSODs in Win908, 2000 or XP. But, as you say, it sounds as if you don't really need it anyway.
Edit: You mention debugging mode - if you're using the new beta then it's likely you're going to have problems - that's why it's a beta.
(Oh Gawd, I just put a music cd in and XP's "You put a cd in, do you want to import, play, show, play, copy, open folder, take no action???" dialog pops up. Windows in Fusion refuses to let my Mac or iTunes see the cd drive. This is why I loved Windows. Selfish bastard.)
You need to disconnect the optical drive from the VM using the icon on the lower-right corner of the window, or the appropriate menu option - Windows isn't "refusing" anything, the optical drive can only be seen by either OSX or the VM, but not both at the same time.