I've also reported this bug. It seems no one really cares about this
issue. I think it is a problem with proprietary modules - you're kind of
on your own, EVEN if you purchase that product from Canonical. I've
pretty much decided I am going to have to abandon Parallels, even though
it is a good product. It is not practical in a production environment.
As you mentioned, you have to run older, less-secure kernels. This was
one of the reasons I stuck with Hardy, as I expected these kind of
system-breaking kernel upgrades to be significantly less frequent, but
that has not happened.

In reality, even though Canonical sells Parallels, I assume it must be
up to the Parallels folks to update the modules with each new kernel.
Workstation 2.2 is almost an abandoned product at this point - all the
effort is going into the Mac version.

I suggest we both get used to KVM, and toss Parallels. It's hard for me,
as I have some specially crafted development environments I would hate
to lose. I may just have to run Parallels on a Windows box just for the
sake of these images.

I wonder if an issue like this (more for enterprises) would be ignored
if the problem were with ATI or Nvidia modules not beiing updated. Half
of their users would wake up to 800x600 desktops. WOot!

-- 
[HARDY] parallels-modules missing for kernel 2.5.24-21
https://bugs.launchpad.net/bugs/295705
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