The battle rages! I just installed VMware Fusion and it worked without a hitch. I downloaded a pre-installed Debian VM image and it worked great. I also just did an Ubuntu install into a Parallels VM and it went smoothly. This is one of those rare moments where I have two software options and both actually work! I should note that I paid money for Parallels, while VMware Fusion is free.
So far they’re both tied for first. Parallels is likely to emerge the winner because of its more integrated file sharing between the host and VM (I believe VMware workstation offers similar functionality) and because of Parallels’ “coherence” mode, where Windows apps appear to be OS X apps.
Still, this is cool. 🙂