Thanks for your reply.
No I have not solved the issue. I basically gave up. Because PEMicro responded to me stating that they do not offcially support this setup ( Using Parallels or any Virtual Machine).
But it is good to know that VMWare works for you. I seem to recall reading somewhere else that VMware worked fine.
...Awesome note about using a Mac editor, and then switching to CW. I will try that setup!
Thanks again!