Parallels problem - Ubuntu 7.10 is primary OS

Hope someone else has had this happen that knows more than me (not too hard to do!) I have been using various versions of Linux for a few years, but am not too proficient in it really yet...

I was successfully running Debian Sarge with Parallels to host my dwindling needs for M$ Windows until a HD failure... Time to upgrade I figured and saw that Ubuntu had a seemingly easy Parallels install. (Debian was not too easy to get it working). I played around with QEMU but already have these .hdd VM's made in Parallels so I tried to stay on that path... So I...

Did a fresh install of Ubuntu 7.10, enabled third party software source "http://archive.canonical.com/ubuntu gutsy partner", ran "sudo apt-get install parallels, install completed, activated successfully, ran parallels and opened and used Windows OS'es fine. Days later Ubuntu had 190 plus updates, I allowed them to install, Parallels still worked... Then Ubuntu had a parallels update, I allowed, it worked until the next reboot. Then no good...

FYI
Version of Parallels (when working) was version 2.2 Build 2222 (also last one I was using in Debian)
Version of Ubuntu sponsored update was v2.2 Build 2224

Error that comes up:

"Error occurred while trying to interact with Parallels driver! Parallels Workstation is either not installed or/and configured or has integrity problems... Please re-install"

I tried re-installing it... no good
I uninstalled it and reinstalled it... no good
I removed all traces and then reinstalled it... no good
I did brand new fresh install of Ubuntu 7.10, did not run any of the updates at all, did the same install method from above and still same issue...

This makes me think that something is wrong with the Ubuntu sponsored update to v 2.2 Build 2224 that is now what gets installed as far as I know... The only weird thing is that the "About Parallels" still says that it is Build 2222. Maybe it is but it has never worked again even using the same method as my first successful attempt BEFORE the Parallels update came out.

Any ideas anyone? Probably a simple thing, but I am not good at internal linux yet...

Thanks in advance!
Les