I just installed Paralles 5 I have VMWare Fusion 3 as well. Running Windows 7 in a virtual machine and I am finding Paralles runs Windows 7 noticable smoother and faster than Fusion 3.
An example is trying to scroll a passage , smooth on Parallells 5 Win 7 combo. slow on Fusion 3 with same Virtual Machine image of Win7
Spec on system is Macbook Pro 2.33ghz Core 2 Duo with 3 gb of Ram. VM is setup to use both cores and 50% of Ram in VMWare Fusion 3. Parallels seem to make it own mind up (There is an auto mode by default )so I dont know what the actual setting are.
The virtual Machine (hard drive image) was made in Fusion 3 and Parallels converted it to it's format and used that)