Even though the bottom of the VM window says Parallels Tools not installed, it is installed.
If you create a fresh Mac OS X Server VM but before you install PT you select the Display preference, your only option for resolution is 1024x768. After you install PT, you get more resolution options. I verified this when I created a 10.5 VM and a 10.6 VM.
But I was wrong about sound not working... sort of. The way I verified if the sound worked was by clicking on the volume control in the menu bar which plays the alert sound when you adjust the control. All I got was either silence or clicks, no alert sound. Once I fired up Safari and played one of the Get a Mac ads, the sound was fine. Afterwards, I clicked on the volume control and I then got the alert sounds. However, I still occasionally get clicks instead of the alert sound.
New bug:
Open Safari, drag any image from a website to the Desktop, double-click on the image. Preview shows a blank image. Quick Look shows the image just fine and the Finder shows a thumbnail of the image.
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