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No updates should be installed through Parallels Desktop For now please perform steps in http://kb.parallels.com/en/5447
I suppose you need to check you mentioned article, and then contact Microsoft in this case, when in Boot Camp, Parallels doesn't have any...
I will try to reproduce on weekend
What is error?
Devices - USB
We are aware of problem and working on it
Actually we are working on this problem in PD3, it is just hard to find out under what condition
What I mean is that you are starting VM from another place, Exactly you have 2 VMs, thus changing one, you think it doesn't change the settigns
is VNC or Screen Sharing is enabled?
You need to install Boot Camp drivers in Vm first. After that when in Mac OS, start Parallels Desktop holding Command key, and access Hard Disk 1...
in Finder go to Folder /etc You will see hosts file
You need to start Virtual Machine first
Are you trying to install SP3 from Parallels Desktop?
Create ticket in support providing details about device as manufacturer and device URL
What drivers ? for printer if it is - it is normal for some printers or devices
It is Leopard Server Developers edition, not kernel with debug options
Please try to send CTRL+ALT+Del from Actions Send Keys
Please uninstall any custom network drivers, and use Shared Printer as described in Parallels Desktop for Mac user guide from...
Please register at our website https://www.parallels.com/en/account/login/
Try to use Custom mode installation and enter key during Windows installation, if it still fails, I suppose you need to call Microsoft