Parallels today released a new update to its software for running alternate operating systems such as Windows along with Mac OS X (simultaneously). Unlike Bootcamp--which requires that you choose an OS--Parallels Desktop allows Mac users to run Windows from inside Mac OS X--either from within a Window or full-screen. Parallels Desktop for Mac Update RC3 offers the ability to seamlessly upgrade a Windows XP virtual machine to Windows Vista; it also adds new options to drag-and-drop to make it even more secure, enabling users to choose "local" or "global" file sharing on the first drag & drop operation. Global Sharing shares the your entire Mac file system (disabled by default), while 'Local Sharing' provides access to only the Home folder. The software also includes Transporter RC3, which allows users to migrate existing Windows PC to a Parallels Virtual Machine as well as easily convert VMware and Virtual PC virtual hard disks to Parallels virtual machines, although it provided a warning for early users of the software.

The company says that the Parallels Desktop for Mac Update Beta1 (Build 3036) users must upgrade their Transporter package on their Windows source machine before using Transporter in RC3 (Build 3170). "Failing to do so may result in a system crash and loss of data," the company said.

The full version of Parallels Desktop for Mac is $80 and runs on any Intel-based Mac. A 30-day demo is available online.