dwb, it sound like you have both installed, yes?
Yes
Do I need to re-format the drive to run Boot Camp? (I thought the Apple sales person mention something about this.)
Usually no. When you run the BootCamp program it will ask how much hard drive space you want to devote to Windows. ( I only run a few programs in Windows but also wanted to have some expansion room just in case so I chose 30GB. ) BootCamp will attempt to repartition your drive to give Windows that amount of space
non-destructively. In some cases it cannot do so and then BootCamp will tell you that you will have to reformat the drive. I had that happen at work so I cloned my drive with SuperDuper!, ran BootCamp, restored my Mac with my SuperDuper backup, and then installed Windows.
Correct me if I am wrong, I could install Windows OS, docs and apps under Parallels (and not Boot Camp). And if decide to delete Boot Camp it should not effect Parallels.
Correct
Or is Parallel that dependent on Boot Camp' presence if activated? It seems like Parallels will work fine on it's own but if introduce Boot Camp into the mix then they both become somewhat entwined.
Parallels and BootCamp are entwined only if you choose for them to be. Parallels Desktop needs to have Windows and Windows programs on
some drive and you have two choices: Install Windows via BootCamp or install Windows via a Parallels virtual drive. Parallels Desktop doesn't care which way you install Windows, it will happily work from either installation. If you have no resource hungry programs don't bother with BootCamp but if you do have a program that won't run (or won't run very well) under Parallels you'll need to install WIndows with BootCamp - why waste the disk space by also installing WIndows and your programs in a Parallels virtual drive?
I think you are confusing SnapShots with TimeMachine. A Parallels SnapShot only backs up changes that have occurred to your Parallels virtual drive but TimeMachine will copy the entire virtual drive every time you use it.
"But if you do this, Parallels cannot pause Windows to restart it at the same spot which is a big convenience." I am not sure what you mean by pause.
Imagine you are running Windows, you have the web browser open on a page and you are working in a document in Word but now it's time to play a game on your Mac - trouble is your game doesn't get along with Parallels - it needs all the memory your Mac has. So you have to quit Parallels Desktop. If you are running WIndows from your BootCamp drive you'll have to shut down your programs and Windows and when it's time to get back to work you'll have to restart WIndows and your programs. But if you are running Windows from a Parallels virtual drive you can tell Parallels to pause Windows instead of shutting it down and then quit Parallels. Later you can start up Parallels and then unpause Windows - instead of taking a couple minutes to restart all your programs it will take a bit under a minute for everything to be restored exactly where it was when you paused.