This OS installs fine and even Parallels Tools installs fine. After that point the mouse cursor disappears and the system is unusable.
Yep, same problem here. For now, the only way to get Loki working seems to be to skip the Parallels Tools installation. Hopefully we'll see an updated Tools release very soon.
Here's the temporary cure that will fix this problem: Make sure the VM is not running. Open "Configure -> Hardware -> Boot Order". Expand "Advanced Settings" and type the following in the text box for "Boot flags:". devices.usb.mouse=1 Close, start the VM and enjoy Elementary 0.4.0.
