Hello, Please try this solution: 1) Please unzip the attachment to some place and start virtual machine. 2) Right-click to the CD-ROM Icon on parallels VM window and choose "connect image". Select the unzipped prl_fs_drv.iso file. As well the image may be connected through VM configuration 3) After Windows is booted, log on to it as Adminitstrator or some other user with Admin-rights, open the CD-Rom content (usually drive D:\ ; My Computer -> D and select install.bat. After that you should see several messages and invitation to reboot. 4) Please reboot the VM and try to install Parallels Tools. This time it should work. 5) install.bat should log all actions to the c:\temp\setup.log. If something will go wrong with the solution, please forum.parallels.com/showthread.php?t=33055 Please inform us about the results.