Mac OS X Virtualization

In Parallels:

1. Boot the Windows XP image
2. Uninstall Parallels Tools from Windows
3. Reboot

In Parallels again, running the virtual machine that you want to convert:

1. Download and install VMware Converter from VMware site (it's free)
2. Run it, and choose the wizard interface. Select:
   1. “Physical computer” as a Source
   2. “This local machine” as Source Login
   3. As Source Data: your (virtual) HD, choosing to resize it if it's convenient
   4. As Type: “VMware standalone virtual machine”, in the “Workstation 5.x” flavour
   5. As Location: the Parallels shared folder isn't going to work, since you've uninstalled Parallels Tools. Use a CIFS network share (enable “Windows Sharing” in Mac OS) instead. An external USB drive should work too.
3. Run the conversion (it will take some time)
4. Shutdown the VM and close Parallels

In Mac OS filesystem, copy from the CIFS share the directory created by VMware Converter to the Documents/Virtual Machines folder. You should also rename this new directory adding a .vmwarevm extension.

Now you can open this directory (that now shows a VMware icon) with Fusion, double clicking on it.

Cross fingers, wait for Windows XP to finish boot and reinstall the new (virtual) hardware drivers.

Install VMware Tools, reboot, and that's all. Simple, isn't it?