The Collaborative International Dictionary of English v.0.48:

Paralyze \Par"a*lyze\, v. t. [imp. & p. p. Paralyzed; p. pr. &
   vb. n. Paralyzing.] [F. paralyser. See Paralysis.]
   [1913 Webster]
   1. To affect or strike with paralysis or palsy.
      [1913 Webster]

   2. Fig.: To unnerve; to destroy or impair the energy of; to
      render ineffective; as, the occurrence paralyzed the
      community; despondency paralyzed his efforts.
      [1913 Webster]

WordNet (r) 3.0 (2006):

paralyze
    v 1: make powerless and unable to function; "The bureaucracy
         paralyzes the entire operation" [syn: paralyze,
         paralyse]
    2: cause to be paralyzed and immobile; "The poison paralyzed
       him"; "Fear paralyzed her" [syn: paralyze, paralyse]