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I tried this. Now when I try to install Parallels Tools I get a dialog that says there was a problem and to try rebooting and then reinstalling. My windows will now not boot in normal mode (note that Parallels Tools is not installed) - I login and just get a blank screen. I can still login in...

I'm having the same problem. I just updated my Parallels 9 to 9.0.24217 and after it updated the Parallel tools, and rebooted my windows 7 VM, windows won't finish booting. It just says 'Please Wait'. I've tried safe mode and done a recover back to prior to the tool install and windows boots...