I have a new MacBook Pro with Retina display (set to 'More Space' 1920x1200) I have the latest build of Parallels 8 installed as well as Windows 8 with all the updates. I am having issues with one of my applications 'Microsoft Expression Web 4' as the screen area for the physical workspace is coming up tiny (see screenshot). The physical screen resolution of my Windows 8 is set to: 3842x2108, and no matter how many times I try to bring it down to 1920x1200, and then expand the window, the screen size reverts back to 3842x2108. I have Windows XP on Parellels too, and this displays everything perfectly. I just want to be able to view things the same way that I do in XP, but with the powerhouse of Windows 8. Please help.
Since you've set display mode to scaled in OS X it would make sense to disable retina mode for your VM here: Virtual Machine > Configure > Hardware > Video > Resolution, set to Scaled. This will bring Windows 8 resolution to 1920x1200.
I have done this and restarted windows, but the screen resolution is still 3842x2108. When I change it to 1920x1200 everything is massive, unlike on the Windows XP Parallels where the screen resolution of 1920x1200 fits my screen perfectly.
Here's a comparison to show you what I mean - this is with Windows XP set to 1920x1054 and Windows 8 set to 1920x1200 (both on Parallels):
Large fonts indicate 199% scaling in Windows which Parallels Tools set for retina mode, i.e. your changes did not apply. Can you post a screen shot of VM resolution settings. I'd shut down Windows 8 and double check the settings again.
Wait, wait, wait... You didn't have to switch font size manually. VM Resolution settings (Scaled/Best for retina/More space) should have tuned it for you. 199% scale and 3840xsomething Windows resolution is an indication that VM settings did not apply. We better clear this up before you go ahead with full manual.
Now I don't understand. When you say "I have done this". Do you mean this: The setting above should have done two things for Windows 8: disabled resolution doubling so that you get 1920x1200 in full screen and also disabled font scaling (leave it at 100%). But according to your description above, it didn't. So, my suggestion is to make sure your Windows 8 VM resolution setting is indeed at Scaled.