Can't see mouse pointer move with Dragon NaturallySpeaking

I am using parallels version 5 for Mac OSx and I am running a Windows 7 64-bit VM. I am also running Dragon NaturallySpeaking voice activation software and when I issue a Dragon command e.g. move mouse right, I cannot see the mouse pointer actually move although I know that it does move because when I click it it clicks over to the right of where it is currently shown.

I find that if I turn off smart mouse then I can see the mouse pointer but the problem is that I want to use parallels in coherence mode and it doesn't seem to want to let me turn off smart mouse if I run in coherence mode

any help greatly appreciated.