Cook fettuccine to desired doneness as directed on package. Drain; cover to keep warm.
Meanwhile, melt margarine in large skillet over low heat. Stir in flour, pepper and nutmeg. Gradually stir in half-and-half. Cook over low heat for 5 minutes or until mixture thickens slightly, stirring frequently.
Stir in cheese; cook just until cheese is melted, stirring constantly. Immediately stir in cooked fettuccine; toss to coat with sauce. Sprinkle with parsley.