I was on Parallels 7, and when I would go full screen on Lion it would move the VM to it's own "desktop" at the end of the line. now it just maximizes to be full screen on the desktop it's on. is there any way to bring the old version back? I've tried turning off/on the "use Mac OS X full Screen" but that didn't change anything.
Nope, I haven't found anything. I don't know if they changed this to work better with Windows 8 and it's use of edges, but it's mighty disappointing to not have an option to use the old way. I may go back to 7 My work around is adding another desktop, forcing Parallels to run there and maximizing. inelegant but it works.
I did just discover if you select "Use Mac OS X full screen" AND "use all displays in full screen" it does make it's own desktop like in v7. so that's the best solution so far. I did test it with only my MBP screen and it still worked.