How do you handle vMware Fusion or Parallels virtual machine backups?
I know it is not recommended to have them backed up via TM as the image files constantly change.
I'm not using Parallels but I have about a thousand VMWare, Xen and KVM VM's, almost all of them managed customer VMs.
I make backups from inside the VM, since that is the best way to make a consistent backup. For every OS and application there's a ready-made backup solution and combining them in a smart way is the way to good backups.
Many of my VMs are LAMP or WIMP. A mysql-dump, made at 04:00am, to a local disk takes care of mysql data in a consistent and restorable way. Just to be sure I keep a week of old backups. Similarly other applications that aren't consistently file based write a backup to /home/backup. Think things like PostGres, DB2, Mongo, Cassandra etc.
Next I use a normal commercial or opensource backup solution to make a backup from inside the VM. These backups follow the familiar scheme of 7 daily backups, 4 weekly backups and for most customers 3 monthly backups.
The disaster recovery procedure consists of provisioning a new vm with the same parameters as the original. After that a script automatically installs the backup software. Next I restore the latest backup or a specific one per customer request. If needed next I restore the database from the restored backup. And that results in a running copy from the night before.