Well fixed now or not yet, in the current update

My Ubuntu 12.04 works fine using Build 7.0.15104 (Revision 778994; July 10, 2012).

It also includes support for xorg 1.12.
 
I have upgraded to 8 and my Ubuntu 12.04 VM still works great. I have an Early 2011 MacBook Pro, so I can't speak to how it will work for you, but I am happy with my upgrade.
 
Sorry, but I have no recommendation... my computer is much newer and I have no experience with older Macs.

Here are the listed requirements for Parallels 8. You should be able to determine if your computer meets these specs.

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Parallels Desktop 8 for Mac Requirements

Hardware Requirements
* A Mac computer with an Intel Core 2 Duo, Core i3, Core i5, Core i7, or Xeon processor (Core Solo and Core Duo processors are no longer supported)
* Minimum 2 GB of memory (4 GB or more of memory is recommended to run Windows 7 in a virtual machine or if your host OS is Lion)
* About 700 MB of disk space on the boot volume (Macintosh HD) for Parallels Desktop installation
* About 15 GB of disk space for each virtual machine

Software Requirements
* Mac OS X Mountain Lion 10.8
* Mac OS X Lion 10.7.4 or later
* Mac OS X Snow Leopard 10.6.8 or later

Note: Mac OS X Leopard v10.5.x is not supported in this version of Parallels Desktop.
 
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