The huge set of problems with this update was slowly resolved, the companies started updating their programs and drivers, and things got gradually better. The biggest problem for me was the parallels, it works like a charm now.
Then apple decided to do another update and my computer started to freeze every other hour.
After months of pain, and waste of time visits to apple store, recently they acknowledged the error and rolled out a mid 2010 MacBook pro update which fixes the nvidia card related freeze.
Now I have some issues with the system controller, but I am not sure if it is software related.
In short, after the storm we are in relatively calm waters now. I am trying to embrace the next storm with apple pushing sand boxing of applications like iPad. Probably I will stop using a Mac if apple does that.