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The update adds: USB improvements, including USB support for Windows Mobile 5 and Web cameras and a much broader list of supported devices; substantially improved OS X performance with the option to switch off Mac hard disk cache for a virtual machine, improved graphic performance; complete keyboard support, including the Eject button and right and left shift mapping for non-English layouts; and Unicode path support that lets users name files and paths in any language.

Parallels also gave its thoughts on this weeks' two major announcements regarding virtualisation software, namely VMWare's announcement of the imminent release of its eponymous emulator

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and Microsoft's decision to drop Virtual PC.

'While we're glad that VMWare is endorsing the Apple market and foresaw their entry as part of their focus on enterprise-class software and building products for highly technical users like software developers and testers, we believe that Desktop's unmatched ease of use, consumer-focused feature set, as well as our strong backing from Apple and great retail presence...will keep us the number one choice for Apple users who want to run Windows on their Macs,' said Parallels' marketing manager, Benjamin Rudolph.

Rudolph added that Microsoft's scrapping of VPC 'is yet another indication of Parallels position as the market leader for running Windows on a Mac'.

Parallels is currently working on new Desktop for Mac features that include: the capability to burn CDs and DVDs inside virtual machines; fast 3D graphics support; the ability to run Microsoft Windows Vista (once it has been released) and a Server for Mac OS X product.

A beta version of the latest update can be downloaded from parallels.com/en/products/; a copy of Windows (or other OS) is required.