I had Parallels running fine for the most part and today when I launched it and ran XP, the control-click function fails. I don't carry a two-button mouse with me most of the time and am wondering if it got deactivated some how.
Unfortunately, Windows in NOT a Mac operating system, and is designed for a different hardware environment, which includes a two button mouse. What you are doing with Parallels is creating a virtual machine on which you can install Windows. Once you are running Windows, you are not running on a Mac, you are running on a PC (even though if you move your mouse off the VM window you are back to a Mac). While it is possible to play keyboard mapping games to make Mac gestures sort of work in Windows, you are actually running a different, non-mac OS with different conventions and design. In Windows, control-click and right click have different meanings. You need both. Therefore you need a two (or more) button mouse. I'd suggest you get a wheel mouse and use it in both environments. It will work in Windows as designed, and it will work in OSX with the right button acting as a control-click to bring up context menus (just as it does in Windows, BTW) and the wheel will scroll in both environments. Many users here seem to think that Windows running on a Mac should look like a Mac, but that's about a useful a paradigm as expecting an airplane to drive like a car. It just doesn't. You can run OSX and have that environment, or run Windows and have that environment, or run UNIX and have that environment,l but these are different systems even if they can be made to run on the same hardware. Reality -- what a concept.