I figured this out myself. From my notes:
In order to straighten out the woeful state of keyboard shortcuts in Parallels, I altered many settings, both in Mac OS System Preferences – turning off as many as I could find – and in Parallels Desktop/Preferences/Keyboard tab. I keep trying to set Command-H in Microsoft Word as “Replace…â€, but the application always disappears when I try. Repeated invocations bring up Parallels (even though the Command-H shortcut in Parallels Preferences is disabled). Finally, after much searching, I learned that Command-H is a Max OS X default shortcut for “hide applicationâ€, and that I can select System Preferences/Keyboard/Keyboard Shortcuts tab/Application Shortcuts, click “+â€, in Applications: drill down to Microsoft Word 2011, specify Menu Title: “Replace…†(no quotes; note that “Replace…†is the name of the sub-sub menu item in the Edit menu in Word), and choose (i.e. press the keys) “Command+H†as the shortcut. Apparently, this specification is apparently sufficiently strong/high level that any other shortcuts are overridden. Now, Command-H works properly in Word – even without specifying it there (in Tools menu/Customize keyboard…) – and I now can (and did) add the customization in Word.
Last edited: Dec 10, 2012