Parallels 8, ubuntu 12.10 update, frozen mouse cursor

Hi all,

I just upgraded to parallels 8 and then I upgraded from ubuntu 12.04 to 12.10. After it rebooted, the mouse cursor is unresponsive. I can bring up a terminal window, and can enter commands using my keyboard, but the alt F1-9 does nothing.

Running OS X 10.8, using a mac bluetooth keyboard and magic trackpad.

Thanks for your help....