I am seeing this same behavior after I press either Ctrl (control) or Alt/Option inside the VM. This isn't pressing a key combo -- I'm just pressing the Ctrl key by itself. After that, the mouse inside the VM turns white, but neither mouse nor keyboard input actually does anything in the VM.
The guest OS is WinXP/SP2 on a BootCamp partition.
I upgraded from 3.0, which worked just fine.
I've installed the VM tools in 4.0 twice.
In Control Panel -> System -> Hardware -> Device Manager, my Keyboard is marked as Unknown Device.
I was never asked to reactivate WinXP.
Parallels, please provide some advice as to how to fix this.
Last edited: Nov 12, 2008