Parallels 9 and iMac 5k

What's up Group!
We are having a gang of trouble using Parallels 9 on the new iMac 5k 27". I copied the environment over from a Mid 2011 iMac. I'm wondering if this is even going to work. Resolutions are causing text and icons to be incredibly tiny. Parallels screen blinks occasionally too. Not the iMac screen.
Wondering if this is even going to work. Any thoughts would be greatly appreciated!

 

We upgraded to Parallels 10 and for whatever reason the 'Scaled' option appears to have kicked in. I know we tried it in version 9 but it wasn't working for whatever reason. Everything looks they way it should now.