Yes...
1) First mount the tools "disk" by doing Virtual Machine | Install / Reinstall Parallels Tools
2) Open a terminal window
3) cd /media/Parallels\ Tools/
4) sudo ./install
5) Enter your admin account password
This should work for Ubuntu and Fedora. I currently have a Ubuntu VM on Parallels 7, and I've installed Fedora previously on Parallels 6 (but haven't tried on 7 yet)
Last edited: Sep 28, 2011