I have experienced some problems, AVAHI is not starting in my Parallesl Virtual Machine in some cases (escpecally if udev rules are not already set). The following patch to /etc/init/avahi-daemon.conf helps:

Today I had some time to setup a Ubuntu 10.4 LTS Server (64bit) Parallels Virtual Machine.

If you like, you can download it (for free) here:

  Ubuntu 10.4 Server 64bit.pvm.zip (364 MB)