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me too. If I click in the VM's window, the mouse and keyboard move nothing. I can only press ctrl-alt to release the keyboard and mouse.
In fact my windows launch was going nowhere after installation.
I turned off the options you suggested, and now after a reboot,...
same problem in 3120RC - no networking - but "fixed"!
I was seeing something like DNS not working in the guest OS. I could get Google, but little...