Coherence & Crystal Don't hide the whole Windows Desktop

In Parallels Desktop v.5.0.9344, when I switch to Coherence or Crystal views, the top-left corner of my Windows XP SP2 Guest OS desktop still shows over my Mac OS X 10.6.3 desktop. (see attached screenshot)

I have attempted to uninstall & re-install the Parallels Tools application with no improvement.

Any assistance would be greatly appreciated.
 

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