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In case anyone's watching this thread, 3.0.4560 fixed the tiny dimensions problem. Thanks, Parallels team.
Someone tried to hack my account yesterday too. Same IP.
IMO I've tried everything. The only thing that worked was to re-install Parallels tools without coherence and video driver support.
Okay, it's been 1-2 weeks, when can we expect an update? I paid for 2.5 and 3.0 and have only seen coherence work for a short period of time....
I know this won't be much help, but I had the same problem. I rebooted both Mac OS X and the Windows VM a couple times, then the Parallels Tools...