I had the tiny icon and text problem running Windows in the VM, and tech support was unable to resolve it. I fooled around a bit on my own and came up with an easy fix that works for me. It may sound counter-intuitive, but it gives me the result I need.
1. Turn off your virtual machine and exit Parallels if it is open.
2. Start Paralells.
3. From the menu bar at the top of the screen, select Virtual Machine>Configure.
4. Select Video from the column on the left.
5. Uncheck Enable Retina resolution.
6. Open your virtual machine.
7. Start Windows then open Control Panel and select Display.
8. Select the Settings tab and set the resolution. (1820x1088 works well for me)
YMMV - Good luck. I am running Mavericks 10.9.1 on a new late 2013 15 inch MacBook Pro with Retina display. Hopefully this will work for others with different configurations.
John
Last edited: Dec 30, 2013