PS2 mouse (code 32) error and rolls back "Parallels Tools" installation

Please perform the following:

NOTE: Before you proceed, please make a backup of your Virtual Machine (.pvm file)

1) Open 'Registry Editor' in Windows Virtual Machine

{Go to 'Start -> Run -> Type 'regedit' (without quotes) and hit Enter/Return}

delete "Parallels Tools" entry from 'hklm/software/parallels/'.
delete "Parallels Folder" from 'C:\Program Files\Parallels\'.

2) Open 'Device Manager' and remove any 'Yellow Exclamated Devices'.

3) Delete the following Entry from 'Registry Editor'

HKEY_LOCAL_MACHINE/SYSTEM/ControlSet001/Services/i8042prt i.e, "i8042prt"

4) Restart Windows.

5) Now, install 'Parallels Tools'. (This time it should not roll back)