iMac Retina Display - Windows 8.1 entering Coherence mode

I have an new iMac Retina display to which i have migrated a VM that was running well on a 2 year old iMac.
The migration went well (had to manually copy the VM file) and the VM works on the new iMac.
HOwever, when I launch coherence mode the whole screen starts flashing black and white and the iMac needs to be powered off to recover.

Any thoughts/suggestions

 

Hi, please try re-installing Parallels Tools and check how it works. Refer, http://kb.parallels.com/4841

 

Dhruba,
Unfortunately same thing happened. Tried re-installing twice.

 

Hi, please follow the steps suggested at, http://kb.parallels.com/111474 and check how it works.