I have witnessed a couple of problems with the mouse pointer after upgrading to Leopard. 1) The pointer no longer changes according to whatever it is hovering on (e.g., link, text, window resize, etc.) 2) The pointer hides during typing and doesn't come back unless I click. Moving the pointer does not reveal it. I have the "Hide Pointer while Typing" option disabled in the Control Panel. I am using a Belkin USB KVM, which was working fine in the Windows guest OS prior to upgrading to Leopard. The pointer still works as usual on the Mac OS in Leopard. Mouse synchronization is enabled in Parallels Tools. Build 5160, Mac OS 10.5, Win XP SP2, Macbook Pro Core2 Duo MBP31.0070.B02
It appears to only be a problem when the VM is in full-screen mode and displayed on an EXTERNAL monitor. When the VM is in full-screen on the Macbook's primary screen, or the VM is in window mode, it works as expected. It doesn't appear to be a problem with which mouse I use, the results are the same whether it's a USB mouse or a wireless Apple Mighty Mouse. One more thing: the Windows screen saver changes the viewing mode from window to full screen, so I have to switch back to window mode every time the screen saver comes on to fix the missing pointer problem.
I tried to uninstall Parallel tools using Add/Remove Programs before I reinstalled it, and the uninstaller hung. I was finally able to get the uninstaller to run by stopping the the Parallels Tools Utility service, and disabling the Kaspersky security. Then, the guest OS hung during reboot, and I had to force kill it. When I restarted it from the stopped state, it froze my Macbook. I reverted to my last VM snapshot, and I'm back to where I was. I can now safely suspend or resume it. So I won't be stopping my VM any more until you release a stable version of Parallels for Leopard.