i have parallels 4.0 and i am currently running windows xp sp2 off of bootcamp. when i change the view from window to Coherence view my mouse will not work with the applications. it disappears, and when the windows mouse shows up on a windows app it only moves in one direction, to the bottom right corner. i've tried to reinstall the tools and get the same result...
Are there any specific drivers installed for the mouse? You can check this in Start -> Control Panel -> System -> Hardware -> Device Manager -> Mice and other pointing devices.