Trackpad problems - Snow Leopard and Parallels 5

I am trying to install a Windows XP VM using Parallels 5 on a MacBook Pro running Mac OS X 10.6.2. I can bring up Windows with no problem, but as soon as I click into the window I lose my trackpad. The keyboard works fine and I can do some limited navigation using tab, arrow and return keys so I know that the Windows environment is somewhat ok. But, I cannot get the trackpad to respond.

I have tried selecting the Devices->USB->Apple Internal Trackpad/Keyboard. This enables my trackpad, but then I cannot escape from the VM environment to use my Mac applications until I quit the VM. Of course this is unacceptable.

I am upgrading from Parallels 2.5 which I was using very nicely on Mac OS 10.4.11.

I have also tried connecting an external mouse, but that is not responding either.

Any suggestions?

Thanks,
Steve

 

Have you installed the Parallels tools? If yes, set the mouse to SmartMouse: Auto (VM settings, tab "Options", section "Services").

 

I have installed Parallels Tools. Smartmouse was defaulted to Auto. I also tried setting it to off. No good in both instances.

 

my problem is exactly the same. in the left hand side of the screen i lose the mouse but in the right hand side it is compensated so that a click activates an icon 1/4 of a screen away from the pointer location.
help?