Will Parallels work with OSX Lion?

A friend has just bought an iMac which still has Snow Leopard. He was wanting to upgrade to OSX Lion but has heard that Rosetta is no longer available in Lion (which he currently needs to run an older language program)
He was thinking about using Parallels and running the Windows version of this program, but needs to know if currently available versions of Parallels will work on Lion.
He can't use bootcamp because his Windows machine OS is WinXP and there is no point in buying Windows 7 just for this one program.
Or should he not upgrade for the time being?
Has anyone had experience with Lion and Parallels please?
Thanks
Ross

Thanks so much for that information - I'll tell our friend.
All the best
Ross

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