I don't know if this is exclusively parallels or not but I have never noticed it before with any other hardware configuration and it does it in 2 of my parallels installations. In Office 2003 (Outlook specifically, but maybe others) there is a feature where it will auto-correct when you mistakenly type with caps lock on - for instance pARALLELS will be automatically converted to Parallels as soon as you hit the space key. The problem is that after your word is converted - caps lock turns off on the keyboard, however windows still thinks the caps lock key is on. So when you go back and forth between OSX and Windows, they are out of sync as far as the caps lock goes. At This point, Windows thinks caps lock is opposite from what it shows on the keyboard. The workaround I've found is to actually open another message and repeat the cAPS lock glitch so windows will "Fix" it again. And it will flip the caps lock back the way it's supposed to be. This glitch is easily reproducible. Really weird! (ps, I am using an external USB keyboard if that makes any difference)
Welcome to the world of Windowz It is an issue where PC (and the Win OS's used) see Caps Lock (and Num Lock) as a "State Change" switch rather than an an On/Off Switch An On Off Switch will work as Caps ON or OFF... But a Change State Switch stuffs up everything... Whenever you start up the Win OS, Win will assume that Caps Lock is in the OFF state, so if you hit Caps Lock Key, the state will change and the Win OS will say you have have turned Caps Lock ON... BUT when you have Caps Lock ON under Mac OS then Start up Parallels VM Win OS... you Caps Lock action is inverted... because of the "State Change" switch issue... where the OS thinks the Caps Lock is OFF but the Light is ON the Keyboard??? Cannot do anything about it! We see this with Thin Client RDP all the time.
