Sucess: Installed XP SP 3 + Parallels 3.0 + Boot Camp 1.4 BETA drivers!

If you're looking at this topic, you're in for a treat!
It is true, I upgraded my XP SP2 to SP3 without updating to Boot Camp 2.1.
Heck, I don't even have 2.0 installed! I have the last beta 1.4 on my SP3.
Now.... here's how I did it!
*THIS IS NOT FOR THE FAINT OF HEART! DO NOT DO THIS UNLESS YOU ARE WILLING TO RISK HAVING YOUR COMPUTER NOT BOOT!*
I also do not guarantee this will work for you and highly recommend using a copy of Winclone. If you have Tiger like me... find a copy of WinClone 1.6.6. It seemed to do the trick for me, and luckily I did not have to use it.
First you need to do the following registry edit, which I found on Microsoft's website. It reads as follows:
This issue affects Windows XP Home Edition and Windows XP Professional operating systems running through Apple Boot Camp.
If you attempt to install this release candidate on an Intel-based Apple computer (Mac Pro, Mac Mini, MacBook, MacBook Air, MacBook Pro, or iMac) that is running Windows XP SP2 through Boot Camp, installation may fail with the error "Out of disk space". ...
To avoid this, manually create a necessary registry key as follows:
To create the registry key
Click Start, click Run, type regedit, and then click OK.
Locate and then click the following registry subkey: HKEYLOCALMACHINE\SOFTWARE\Microsoft\Windows\CurrentVersion\Setup
On the Edit menu, point to New, and click String Value.
In the text box under the Name column, type BootDir and press ENTER.
Right-click the name BootDir, and then click Modify.
In the Edit String Value dialog box, type the drive letter for your system drive, and then click OK. For example, if your system drive is C:, type C:\.
Close Registry Editor.
After you have created this registry key (or if you created this key when you installed a previous version of this Service Pack), you can proceed with the installation.
OK... now I was not able to get SP3 to install under a normal boot... I used msconfig to do a semi-clean boot.
Click Start, click Run, type msconfig, and then click OK.
Select "Selective startup" and uncheck all of the boxes EXCEPT "Load system services".
Restart.
Go to http://update.microsoft.com (as usual) and follow all instructions.
The installation can take a VERY long time. It took about 30 minutes for me. But others have reported several hours. Also, upon first and second boots the system boots VERY slowly. On the third boot, you'll notice that your system is actually booting faster than it did with SP2. At least it did for me. And heck, maybe I'm imagining it, but I think EVERYTHING works faster now...
Upon successful installation, you just need to run msconfig (if it doesn't automatically) and select "Normal boot".
Parallels installation:
If you have Parallels 3.0, I was able to get it working with Build 5600 now currently available on their website.
If you get a blue screen upon Parallels boot, just go to the configuration editor. Select the Hard disk. Go to the advanced tab and select "Cleanup Boot Camp partition..." It will boot correctly and install the latest boot camp tools upon your next boot.
Tada!

I believe that you need to have BootCamp 2.0 installed in order for that update to work.
~Lyssa

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