I have tried everything. Reinstalling, reconfiguring, and got the same results. When I try to install the sound adapter in WIN XP, I get an error installing drivers with a message of Invalid Data. I have installed the VM Tools. Everything works perfectly. There is no Sound directory in the Tools directory. I have 20" 2.0 Intel iMac.
I can't exactly tell where the problem is originating, so let's see... assuming you're at beta6... (some earlier versions did not have a functioning sound device)
Your VM does have a sound device added, and is not pointing to null device, I hope? Upgrading from earlier betas may leave the VM without sound initially.
You did cleanly uninstall Parallels Tools first before reinstalling to the current version? I checked mine and it has 'Sound' folder.
The sound driver that gets installed will show up as an Intel device. This is normal.
