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What I was asking for is a Problem report (see here for details
http://kb.parallels.com/en/9058) which contains diagnostic information for a VM. Without the report it's difficult to figure all the details that may help in understanding the problem and suggesting a solution.
You have two full HD displays, that's fine. Running XP is OK, too. My previous suggestion about retina support doesn't apply then.
Windows resolution of 1828 by 943 pixels seem correct if your VM window is large enough, should fit 1920x1080 display.
Windows text/icons seem too small? The standard approach to make fonts larger in Windows is to increase DPI percentage. Unfortunately, many older (and even newer) Windows applications don't support scaling well. This is particularly the case with XP itself, 7 and 8 scale better. But this isn't Parallels problem.
You want to change Windows resolution via display settings and it doesn't work? This is because in windowed mode Parallels Desktop normally tries to keep Windows resolution match pixel for pixel with VM window size, keep image sharp. Otherwise scaling will cause blurring, something most people don't want. If that's what you want to do, you have two options:
- Use Modality view mode, resizing VM window will not change Windows resolution, will scale the image instead.
- Use Full screen mode and set VM Configuration > Options > Full screen > Scale to fit screen option to Keep ratio.