It works!!
Ironically, the Parallels image that worked in VMWare did not work when I updated Parallels. After the conversion to VMWare, the windows on that image had to be re-activated though. It is a big pain that involved calling up an automaton lady and typing all the digits of PI, first on the phone and then on the computer.
Anyway, after all that, windows is now working over Fusion on my Macbook Pro. I am running the beta 2 of Fusion 2. So hopefully this will run for a while before I am tempted into buying it.