After my copy/paste started working, I tried something new and it fixed both copy/paste and the taskbar issue:
1 - uninstall parallels tools from the win control panel
2 - restart (I did a system update, I had a .NET framework update, not sure if this changed anything)
3 - reinstall parallels tools
I think/hope uninstalling it first did the trick. I was previously doing Virtual Machine > Reinstall Parallels Tools without first uninstalling.
And then I took a snapshot just in case.
Windows is such a pain :/
Last edited: Feb 14, 2011