Parallels opens but window programs will not open

I have had parallels for approximately four months. I upgraded to parallels 3.0 in July so that I could use coherence. My build number is 4128. This version had been working fine until last night. My wife was trying to get something to open in photoshop and now the programs will not open once windows starts. Parallels will open and close normally but whenever I double click on anything on the screen in windows it will not respond. Any suggestions?? I would think it would be something fairly simple. I have tried restarting both parallels and mac without fixing the problem. It still opens parallels and has windows open but my programs and files will not respond when I try to open them. Thanks for any input.