Parallels iPad App + Remote Desktop - Backspace issue

This may be a configuration issue. But I have not found a solution.

I run Windows XP w/ Parallels, and often use Windows Remote Desktop (over VPN).

When I use the iPad app to connect to the virtual machine, and use Remote Desktop, backspace does not work on the Remote Desktop. All other applications besides the Remote desktop work fine (this is through the iPad App).

I can switch to the extended keys (on the iPad) and use delete (forward delete), but backspace does not work.

Backspace on Remote Desktop works fine when using the Mac itself. It only fails when using the iPad App.

This is odd, since I would expect backspace on the iPad keyboard to be the same as backspace on the Mac keyboard...