I have seen all types of problems on this subject, but none similiar to mine. I am running Vista under Parallels 3.0 and after some difficulties with the upgrade install, I though I had solved all the glitches. I left the iMac alone for a few hours and the message un the lower bar in the Parallls Desktop indicates "Virtual Machine is paused. Click Start to resume execution. At times the mouse cursor was missing and after some fooling around, using the middle button on the mouse brings it back, but as I try to move it to restart the VM, it disappears just before the border. I cannot get it to move into the OS X desktop as it disappears again as I try to drag it out of the Parallels Desktop. I tried pressing all different key combinations and finally was able to get the cursor functioning so that I can move it to the Mac OS X desktop. It is obvious that there are many different instances where people have experienced the disappearing mouse cursor. Has anyone had this particular mouse cursor problem and come up with a better solution to fix this problem? I hesitate to send this to support as they must be inundated with similar mouse cursor problems and hopefully working on a solution. This problem was not present prior to the upgrade and installation of the latest Parallels Tools.