Mouse Capture not working in Parallels 8

Just installed Parallels 8, and mouse capture is no longer working in either my Windows 7 or Windows 8 CP virtual machines. I played with smart mouse on and off - I reinstalled tools twice. Rebooted both Mac and Windows several times - nothing works. The mouse is fine - I just have to hit ctl/opt in order to move the mouse between the Mac and Windows.

Any ideas?

Thanks,

 

Are you on a retina device?
Try disabling mouse shadow.
I am very curious if this works and I think I know what's going on.

 

nice try

but that's not it. By the way, the problem seems to be mostly in full screen mode.

 

I am experiencing the same problem. But here is some additional information. When I am running one VM, I don't seem to have a problem. However, when I have a second VM running, the mouse gets captured only on the first VM. When I switch to the second VM, the mouse cursor briefly appears as the Windows mouse (as is expected), but then quickly changes to the MAC mouse. I am able to move the mouse in the Windows VM and click on things, but hot tracking and other mouse hover operations do not work in the second VM.

Ray

 

I had this this problem in Parallels 8 + WinXP guest that I had just imported via Parallels Transporter.
It went away when I went to ControlPanel -> Mouse -> Pointer Options and unchecked "Display pointer trails".