I used the uninstaller, but it didn't get rid of everything so I had to follow the steps in this article:
http://kb.parallels.com/en/5116
I then restarted Windows and used the "Install Parallels Tools..." menu item. The installation appeared to go correctly and Windows restarted, but Parallels Tools (and by extension Coherence) is definitely not working. Here's how things look:
* The Parallels Tools statusbar icon says Tools are installed
* Mouse sync works
* As far as I know, time sync works
* Clipboard sync does not appear to work
* Shared Folders appears to work, but Parallels doesn't think they do—see next
* Under Virtual Machine Configuration, most of the panes in the "Features" area display this message:
"These settings are not in effect now as Parallels Tools are not installed or currently unavailable."
The SmartMount and SmartGuard panes do not show this message, and the Services pane shows a similar but somewhat different message. Yet Shared Folders sorta seem to be working anyway (Coherence certainly isn't).
* Shared folders
work, but not, I don't think, the way they're supposed to. Under My Network Places, there are two entries: "Home on .psf" and "Host on .psf". "Home on .psf" is just my Home folder, "Host on .psf" is my entire hard drive. Somehow I don't think they're both supposed to be there, since under Configuration... > Shared Folder I have only "Share Mac OS X folders with Windows > All disks" selected.
* File drag-and-drop works—I can open an HTML file on my Mac in Firefox on Windows by drag and drop. It's getting at the file through \.psf\Host\ even though the file is in my Home folder (this seems correct, though, since I don't think \.psf\Home should be there in the first place).
In short, Parallels Tools is seriously screwed up, and inconsistently so.
I'm now restarting that VM, and here's how things look:
* For the first ~30sec after reaching the Windows desktop, Windows is completely unresponsive. It doesn't even acknowledge the presence of the mouse—the cursor changes when mousing into the Parallels window, but mousing over buttons does not cause them to change color like it normally does, clicking has no effect, and keyboard input appears to be completely ignored.
* The message in the configure dialog, about "These settings are not in effect...", is gone, but Coherence still doesn't work, Shared Folders is still doubled, and clipboard sync still doesn't work.
* Everything else is as it was before the reboot.
This is all with the clean install of Parallels 4.0.3846 on an up-to-date OSX 10.6.1.