Parallels has released an update to its Desktop for Mac software that incorporates a number of major improvements.

The latest version, which lets users of Mac machines run Windows or Linux at the same time as Mac OSX, includes a new feature called Coherence that lets you run Windows applications as if they're native applications.

In Coherence mode, the Windows desktop disappears leaving Windows applications like Outlook or Internet Explorer running directly on the Mac desktop and from the Mac application dock.

"When we introduced Parallels Desktop in April, we blurred the lines between the Mac and Windows worlds", said Benjamin Rudolph, Director of Communications at Parallels.

"This is a game-changing technology that gives users the ability to choose the best application for the job at hand."

The second major new feature is called Transporter and gives you the ability to move your entire PC to your Mac. It saves all of its settings, applications, files, and profiles and moves them to a Parallels-running Mac machine.

Transporter is even able to convert VMware Workstation and Microsoft Virtual PC images to Parallels-ready images, so Virtual PC users working on older PowerPC Macs can upgrade to Intel Macs without losing information.

Other new features include support for USB2, support for Boot Camp partitions, and true drag and drop functionality between Windows and OS X.

Parallels users will receive the update automatically and for free, while new users can download and use a free trial for 15 days, after which the software costs $80.