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In a medium saucepan, bring water to a boil. Add barley and 1/2 teaspoon salt. Return to boiling; reduce heat. Cover and simmer for about 40 minutes or until barley is tender, stirring occasionally. Drain and set aside.
Meanwhile, in a 12-inch skillet, heat oil over medium-high heat. Add onion; cook and stir about 5 minutes or until tender. Stir in the remaining 1/2 teaspoon salt, squash, broth, pepper and thyme. Bring to a boil; reduce heat. Cover and simmer for 10 to 15 minutes or until squash is just tender. Stir in corn; cover and cook 5 minutes more. Stir in barley and parsley; heat through.