Hm, in this thread sequence I was lead to believe your problem was with upgrading to PDM7, when in reality you had a problem with your Windows VM. Your only option is to attempt the restore procedure, and if that fails reinstall Windows on top, as I can't debug the problem from a distance.
But if System restore is successful it will only bring you back to the situation you had before, in which I case I would try install parallels tools without uninstalling them first.
Or you can submit a support ticket to Parallels, although this is probably a Windows problem and not a Parallels problem.
Last edited by a moderator: Dec 2, 2011