The above fixes failed to work. I am using build 4.0.3844. At this stage, the mouse will not uncapture with parallels, I cannot drag files from the Mac to the Windows desktop and indeed I cannot resize the Windows desktop. All of these things I USED to be able to do.
I have looked at the "automatically mounted CD" and there simply is no "Default CD/DVD" option i the CD/DVD menu.
I have tried to use the " Add/Remove programs control panel" and I get a "fatal error" when trying to uninstall Parallels tools.
I have tried to use the Device Manager, and successfully removed the Parallels Tools, but that still has not fixed the problem.
So right now I am very much stuck and this is very inconvenient. Evidently I am not the only one who is having persistent problems with Parallels Tools.
Please help.