There is still some tweaking to be done for Parallels to work with Lion as it does with Snow Leopard. One item I have noticed is with coherence mode. If I am out of coherence mode and place an item on my desktop, it appears on my Mac desktop as well. This is normal. But if I go into coherence mode, the shortcut placed on the desktop (not on my Mac desktop) will not work. Anything on the Mac desktop will look for an application in the Mac programs to start. If this is a Windows program, it cannot find an application to start. The .ink extension on a shortcut does not work. I have updated to the latest version of Parallels (that came out with Lion).