Here is how to connect your iPhone using Parallels. I am using the version 2 and it works great. I got the instructions from this site:
http://blogs.zdnet.com/mobile-gadgeteer/?p=500
Quote: "I found the below steps from olddirtyme on the Parallels support forums and these worked perfectly to get iBacca to appear in iTunes.
SOLUTION - first attach iPhone & make sure XP instance “sees it” and is connected to it.
Click Start
Right-click on “My Computer” icon
Select “Manage”
Click “plus” sign next to “Services and Applications”
Click “Service” from that dropdown
Click on Service named “Apple Mobile Device” and select “Restart”
Click on Service named “iPod Service” and select “Restart” "
Give it a try.