15" RMBP Windows 7 guest Mountain Lion 10.8.2 host Parallels 8.0.18354 but this issue is not new. The mouse position provided to the guest is always a few pixels away from where the cursor is shown onscreen. This makes precise tasks like image editing really frustrating. I have prepared a testcase which can be found at: https://github.com/mm201/CursorPrecisionTest You can download a binary of my testcase at http://puu.sh/20YIN Using my testcase, the red lines (hardware) should line up exactly with the black crosshair (software), but they don't, as you can see: