via the AE-List:
Mac OS X Hints has a submission on how to fix slowness of Parallels Desktop running Windows XP on a MacBook.  EvidentlyVM paging occurs even with 2GB of RAM because of caching and flushing memory routines.  The reader developed a fix  called PD Tweaker, a tiny plugin for Unsanity's Application Enhancer  that loads only in Parallels Desktop.
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