I found a temporary work around until this is resolved.
After multiple troubleshooting efforts, I discovered that if I disable synchronizing time with Mac, it works just fine.
To avoid these issues do the following:
Switch your view in Parallels to "Window"
Click "Virtual Machine" in the menu bar and choose "Configure"
Choose the "Options" category and select "Advanced" from the list
Deselect the "Time:" option "Synchronize with Mac"
In Windows, open a Command Prompt screen and enter the command: [tzutil.exe /g] and determine the correct Time Zone syntax, then in the command line, enter: [tzutil.exe /s <"correct time zone syntax">]
In my case, the correct time zone setting was: [tzutil.exe /s "Central Standard Time"]
I subsequently changed my Windows 7 Internet Time settings to get the Windows 7 time from "time.apple.com" so that my time on my Windows 7 Virtual Machine is the same as my Mac or as close as possible.
This is the only way I could address this issue without actually finding a fix in the code. This should work for others too so I thought I'd post my findings here.
Good luck to anyone who is trying to resolve this same issue.
Jim Naeve
Cisco