VMWare says that the import process will bring in a Parallels vm...but it does not seem to. I should not have to download a separate piece of software to do the job that VMWare says Fusion will do. This is nuts. All I want is for Fusion to do what it claims it can do.
I don't disagree with you and my originally reply was just an effort to help with a workaround! 
How would I use vCenter Converter Standalone 5.0 on my Mac to convert a Parallels Windows vm? I t appears to run on Windows and does not have a Mac version.
Well I guess I could just say RT*M! I gave you the link to, however aside from that it gets installed in Windows and used from there, doesn't matter whether is a physical or virtual machine although if you had RT*M you'd already know that. 
BTW...I decided that I would clone my Windows 7 machine on the Macbook Pro and see if I could import it. I tested the clone vm and it works percectly. However, when I try to import it as Fusion says to do it...I get the following error."VMWare importer is unable to prepare your virtual machine to run under VMWare Fusion. The virtual machine cannot be imported."
Since there are lots of ways to "clone" a Virtual Machine I can't fully comment since you didn't state explicitly and specifically how you cloned the VM and whether or not it was a Parallels VM or VMware Fusion VM to begin with. However it was the latter all that one need to do is simply copy the Virtual Machine Package to the other system (assuming it was a normal file based Virtual Machine and not the Boot Cam partition running as a Virtual Machine) and then open it in VMware Fusion. Simple and straight forward and no importing necessary.
