P5-XP; 2 user IDs, auto release of keyboard & mouse works on 1, not the other

Okay this is really a strange one. I am installing P5 two different machines and they both came up with the same problem. Both are CLEAN P5 installs (no upgrade) using Parallels Transporter to migrate XP over. The migration worked without a problem, but I immediately noticed that I was not able to get the mouse and keyboard to auto release as I would attempt to move from Parallels in Windows mode to OS-X space. Both machines are running 10.6.2 with both being the newest version of the imac and mac mini hardware (shipped early Nov).

My first inclination was of course to uninstall Parallel Tools and reinstall, but that did nothing to solve the problem. I then tried removing Parallels Tools, then deleting the associated folder and registry key followed by a reinstall, but still the problem persisted. I even deleted the VM and recreated it using the same disc image, but that did nothing.

It was happenstance that I decided to login using a second XP user ID on one of the machines and low and behold, the auto release of the keyboard and mouse worked. Then while still logged into the working user ID, I did a fast switch back to the offending ID and it did NOT work. This is SO strange to have the same VM with two user IDs giving different Parallel Tool behavior. I suspect something in the registry, but need guidance as to how to proceed. I really hate to remove the offending user ID and recreating it as the person has it all setup the way the want.

As I stated, this problem is showing up on BOTH physical machines in exactly the same manner.

Please advise

David Tidmore