Parallels 2 - Cant resize Window

Have just reformatted my mac due to problems.
Reinstalled Parallels 2 again.
But it doesnt seem the same as before, I can no longer resize the Windows XP window which is really really annoying and coherance mode doesnt seem to exist anymore.
I figured that this might be because it needs updating from the disk copy I have, but when I click update the status bar doesnt move.
I am using build 1940, does anyone know if this is my problem and if so how I can get a update to the final version of Parallels 2?

Thanks

 

Also think I need to mention that its the UK version im after.