To install linux permanently simply run the install shortcut from the desktop.Boot the new Virtual Machine and you should end up running the desktop linux.You can use more but I have heard of people running into issues using 1GB For memory settings I used 376mb and it runs just fine.Next open the CD settings and change the CD to run from an image file and point it at the iso image you have downloaded.Once you have done this edit the VM's settings so that the boot sequence will use the CD first.Create a new VM (I chose 'Linux' and then 'Other Linux kernel 2.6').Installing Ubuntu 6.06 Dapper Drake under Parallels Desktop is really easy to do so here's a few pointers how to do it and to customise it to be easier to use via the mac keyboard: The installation