I read on another forum that the following worked to resolve the issue:
① → Configure > Features > Services
② → uncheck share clipboard
③ → click ok
④ → close parallels [the configuration will be saved]
⑤ → open parallels again and re-select share clipboard
[other notes]:
⟐ .NET 3.5 installed on the Windows VM can break copy/paste
⟐ Disable "Isolate Mac from Windows" in Security > Configure > Options [then reboot] ↩
⟐ Repair permissions on your Mac with Disk Utility monthly
Last edited: May 17, 2011