I just moved everything to a new MBA 11" and when I run full screen on the internal display it looks like the attached screen shot. In window-mode, it looks fine. In full-screen on my external monitor (1920x1200) it looks fine. I am running the latest Parallels 6. I rebooted the VM. I reinstalled the Tools. I updated the video driver (which was at latest already). Ideas?
Looks like Parallels doesn't like the MBA 11" native screen resolution of 1366 x 768 maybe because 1366 is not a multiple of 16. Have you tried 1344 x 756?
Sorry about the lack of updating. I discovered that the resolution 1366x768 doesn't work, even in Windowed mode on my MacBook Air (something with the video chipset?). Anyway, this is what Parallels had to say (after I tested a lot of scenarios: "I am glad to inform you that Our product Maintenance Team is aware of this issue and they have already prepared a fix for it. We are waiting this fix to be released in the nearest updates of Parallels Desktop."
Just got a MacBook Air yesterday, and had no idea about this issue. Running Parallels 5.0.9376.599993, Windows 7 VM, still have this issue in Full Screen. I've resorted to Coherence, but I'd rather be using Full Screen. Is it also a problem in Parallels 6?