This problem is fixed in Parallels Desktop 8.
Alex,
That's wonderful news! As I purchased parallels 7 in July 2012 (only a couple of months ago) for the express purpose of running lion as a virtual machine on my new MacBook pro.
As the version that I purchased does not do what the sales blurb said it would do (allow me to run Lion as a virtual machine in Parallels 7), how do I either get a refund for parallels 7 and pay for parallels 8 or get a free copy of parallels 8?
thanks
Mark