I was able to install the newest version of Parallels off of the website yesterday. I have a Mac Leopard Pro X 10.5. I got the window to open windows, but my mouse and keyboard wouldn't capture and work. I know there have been other postings about this. What I haven't been able to find, is then I rebooted and went to my computer's windows side and my Novell login screen comes up, but my mouse and keyboard won't work there either. They work fine on the Mac side. Any help would be appreciated!
I had the exact same problem as you did but with XP Pro. Never found a solution and don't plan on even trying to install parallels again because of how much of a pain and hassle this has been. What a waste of money. http://forum.parallels.com/showpost.php?p=103622&postcount=5