Parallels announced today that Parallels Desktop, its virtualization software for the Mac, has been updated. Parallels Desktop allows users running Intel-powered Apple Macs to run Windows, Linux or any other operating system at the same time as Mac OS X, without re-booting.

This new version of Parallels Desktop is anchored by a completely customizable new feature called Coherence. Coherence allows users to run Windows applications on their Macs like they were native applications.

When users switch to Coherence mode, the Windows desktop disappears, leaving Windows applications, such as Outlook and Internet Explorer, running directly on the Mac desktop and from the Mac application dock.

"When we introduced Parallels Desktop in April, we blurred the lines between the Mac and Windows worlds. With the introduction of Coherence, we completely blow that line away," said Benjamin Rudolph, Director of Communications, Parallels. "This is a game-changing technology that gives users the ability to choose the best application for the job at hand. We intend to expand the Coherence function to help computer users move to a truly operating system-agnostic desktop."

Parallels Desktop also includes a powerful new migration tool called Transporter that gives users the ability to move their entire existing PCs Â? including all of its settings, applications, files and profiles -- directly to a Parallels virtual machine running on their new Macs, without re-installing Windows. Perfect for users who are just switching from a Windows PC to a Mac.

The new Parallels Desktop also comes with the following new features:

• "Plug and Play" USB 2.0 support: By upgrading USB support from 1.1 to 2.0, users can now access popular USB devices like external hard drives, printers, and scanners, and use them at full native speed, simply by plugging the device into their Macs. iSight cameras built-in to MacBooks, MacBook Pros and iMacs are also fully supported in virtual machines. There is no complicated setup required to make USB devices work.
• Full-feature virtual CD/DVD drive: Users can burn CDs and DVDs directly in virtual machines, and play any copy-protected CD or DVD just like on a real PC.
• Support for Boot Camp partitions: The update gives Boot Camp users the ability to easily run their entire Boot Camp installation, directly in a Parallels virtual machine, without any complex setup or manual reconfiguration. Users can switch between loading Windows in Parallels Desktop or Boot Camp as often as theyÂ?d like.
• True "Drag and Drop": Easily share files between Windows and OS X by dragging documents and folders from one desktop to another. Drag and Drop is completely customizable to ensure maximum file and system security.
• Compatible with Windows Vista: Users can create a new virtual machine that runs Windows Vista, or upgrade a Windows XP virtual machine to a Windows Vista virtual machine, without losing any information or starting from scratch.

You can grab a copy of Parallels Desktop on the Parallels website for US$ 79.99. A trial version is also available on the website. Kudos to Ben for the heads up.