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THis did it for me... I quit Parallels, deleted these from the terminal and restarted. Seemed to solve the problem rm -r ~/.config/Parallels rm -r ~/.parallels_settings rm -r ~/Documents/.parallels-vm-directory It was probably the last one that did the trick. I also had to rename the...

Work-around... followup I went into the Preferences and changed the UserInterace>Advanced>Animation Mode="Disabled" and I can now effectively use my apple-h again. Weird. I'm happy now.

Me too... I have been using Apple-H to toggle between a full screen Parallels and MacOS for quite some time. Why did it get disabled with this update? Is there a way to get it back? Perhaps something I didn't do?

I've been using parallels with XP as a guest to Macosx. After loading the RC, I am getting an ip address conflict with the host os. Attaching screen shot. Weird haven't seen this one before. The only thing I did differently was added sound and usb capability.