PD 7 in Lion Coherence mode error

Y

YanH

Bit poster
I upgraded Parallels Desktop from 6 to 7 (running Windows XP SP3) last week and Coherence mode has since stopped working. I've searched for some solutions including uninstalling mouse drivers and reinstalling Parallel Tools. However, after multiple tries and restarting the VM for 10+ times, the problem persists. The error message simply reads:

An error occurred while switching to Coherence. Please try again. If the problem persists, please contact the Parallels support team for assistance.

Any suggestions? Thnx!
 
I remember Coherence actually worked when I just upgraded but stopped working quickly after...
 
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