IMO, they solve two different goals. Sometimes these goals overlap, but not always. Please someone correct me if I'm wrong, but this is how I see it:
The goal of concurrency is to model a problem that is easier or better or more natural to model concurrently (that is, different parts are running simultaneously). For example, if you are simulating agents in some virtual world (eg a game), then it may make sense that these agents are being modeled in a way that they are all running simultaneously and the processing of one does not block the processing another. This could be done by timeslicing available processing between each agent (either by using the processor/OS pre-emptive multitasking, if available, or through cooperative multitasking[1]), or is could be done by physically running multiple agents at the same time on different processors or cores or hardware threads (parallelism). The main point is that concurrency may be parallel, but does not have to be and the reason you want concurrency is because it is a good way to model the problem.
The goal of parallelism is to increase performance by running multiple bits of code in parallel, at the same time. Concurrency only calls for the illusion of parallelism, but parallelism calls for real actual multiple things running at the exact same time and so you must have multiple processors or cores or computers or whatever hardware resources for parallelism, while concurrency can be simulated on single core systems. Parallel code is concurrent code, but concurrent code is not necessarily parallel code.
Distributed programming is parallel programming where the code is running in parallel, but distributed over multiple computers (possibly over the internet at distant locations) instead of running locally on one multi-core machine or a HPC cluster.
From stackoverflow[2]:
Quoting Sun's Multithreaded Programming Guide:
Parallelism: A condition that arises when at least two threads are executing simultaneously.
Concurrency: A condition that exists when at least two threads are making progress. A more generalized form of parallelism that can include time-slicing as a form of virtual parallelism.
As for when can concurrency be turned into parallelism, that depends. Assuming that the hardware resources exist (or that it simply falls back to time-sliced concurrency if they do not), parallelism can be achieved if there are multiple things that can execute independently. There are at least three types of parallelism and if your problem, code and/or data fit one of these, then your concurrent code may be executed in parallel.
1. You have a number of items of data and each one can be processed independently and at the same time. This is the classic embarrassingly parallel data parallelism. For example, you have a large array of input data and an algorithm that needs to run on each one, but they do not interact. Calculating pixel colours on your screen, or handling HTTP requests, for example.
2. You have two or more independent tasks doing different things that are run in parallel. For example, you have one thread handling the GUI and another thread handling audio. Both need to run at the same time, but both run independent of each other with minimal communication (which can happen over a queue, perhaps).
3. Sometimes you have a stream of data which must be processed by a number of tasks one after the other. Each task can be run in parallel so that if you have a stream of data, item[0], item[1], item[2], etc (where 0 is first in the stream, 1 is next and so on) and a number of tasks that need to run in order: A, B, C - then you can run A, B and C in parallel such that A processes item[0] while B and C are idle, then B processes item[0] an A processes item[1] and C is idle. Then C processes item[0] while B processes item[1] and A processes item[2] and so on. This is called pipelining and as you probably know is a very common technique inside processors.
Of course, all three can be combined.
[1] Could be a coroutine which is yielded or simply by executing some kind of update function which, by contract, must not block
[2] http://stackoverflow.com/questions/1050222/concurrency-vs-pa...