Glad to see I'm not the only one continually disappointed by this. I reported so many bugs with Spaces/Coherence mode with 7 that it seemed neither feature had actually been tested with Parallels. Every other app "just works" with spaces, but I assume Parallels is actively doing something to always end up starting all VMs on desktop 1. Very serious pain for those of us using spaces, although apparently we're in the minority (or it'll be fixed in a paid upgrade to v8). Love the product, but the support is seriously lacking 