Multiple monitors work perfectly in Parallels 7
I just bought an imac 21.5" on 11/11/2011 after my third PC crashed in the past 18 months. I only use Windows, however. I purchased Parallels 7 and Windows 7 from inside of Parallels and installed both (I installed Windows 7 32 bit though). I loaded my Windows 7 programs, scanner, printers and it all works and looks perfectly.
I had my old monitor (HP w2558hc 25.5") now laying around and about to go in the garage. I went to Best Buy and purchased a Belkin Mini DisplayPort to HDMI Adapter and crossed my fingers. I came home, plugged my old monitor into my new imac via the adapter and presto: both monitors worked perfectly. I drug the Windows 7 screen into the old monitor display and hit the green + button. That enlarged the Windows 7 screen to fill my old monitor screen. My Mac OS screen is now in the other monitor. I have two screens running perfectly. I can even open two documents in Word 2010 (Windows version) and drag one of the documents into the other screen, so I'm looking at two different Word 2010 documents (both Windows version) in two separate monitors.
By maximizing the Windows 7 screen only via the green + button, instead of the diagonal arrows in the top right corner, I also got the added benefit of the Apple menu bar no longer dropping down everytime I try to hit the minimize, maximize or close x in the top right corner of the Windows screen. However, when I do hit the diagonal arrows in the top right as my way of maximizing the Windows screen - I get only Windows and the other monitor goes blank. Maximizing the Wondows screen using the green + in the top left corner gives me 1) a maximized Windows screen, 2) a second monitor that works perfectly and 3) the Apple menu bar doesn't drop down every time I scroll my cursor to the top of the Windows display. Works perfectly. Thank you Parallel 7.