I have upgraded to the latest beta 2 but I can't install the parallel tools properly. I have tried selecting it via the "Installl Paralles tools" menu option as well as copying vmtools.iso and runing it directly. While it seems to install correctly at the end of the install the whole Windows screen goes black and nothing happens. I suspect one of the drivers it installs (video?) kills it. I have an Mac Mini. The previous beta of Parallels worked just fine.
There's a thread a bit further down that deals with this. If memory serves, you should boot Windows in Safe Mode and install Parallel tools from there. I had your same problem and that worked like a charm for me.
Thanks that seemed to work. Now I have managed to reboot. However have run into the next bug...coherence seems to be turned off and pressing the button does nothing. I'll search the forums to see if this is another known problem.