Running Ubuntu 11.10 in the latest Parallels 7 with OS X 10.7.2 as a host, I find the login screen is distorted when I start Parallels up in full screen mode. Additionally, when the VM starts, the screen is distorted: the desktop background is tiled across the screen four times, instead of being drawn fullscreen, and the menu bar is only drawn part way across the screen. Taking the window out of fullscreen mode, and then putting it back into fullscreen mode, fixes this, although I usually have to relaunch Gnome 3 to clear up distortion.
I see this same issue using Ubuntu 11.10 (Gnome 3 DE) and Arch (Gnome 3 DE). If I use Ubuntu 11.10 (Unity DE) or Ubuntu 11.10 (Gnome Classic) the screen tiling appears momentarily, but clears up when the DE loads. Makes me wonder if it is a Gnome 3 bug.
Found this thread on the Ubuntu forums which sounds like it's describing some of the distortion problems I've seen, and pins the issue on the fglrx driver. Anyone know which driver Parallels appears as to a Linux guest?
Hey -- does anyone know how to fix this? I've been asked by my boss to figure it out, and I'm stumped.
The latest update to parallels fixes the login screen issue, in a way: the login screen is now centered in the middle of the screen, undistorted, with black on either side. The Gnome Shell distortion issue is still there, and I think it's a Gnome Shell issue.