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I think this has something to do with the Guest Tools Status value in the <vm name>.pvs file for the offending VM. I've tried several...
Following BenInBlack's advice I disabled the CD as well. This made no difference. It's almost as if Parallels Desktop should set a flag on...
I did have 'vmtools.fdd' as the default floppy image, but I've disabled that and it's still claiming that it's installed Parallels Tools.
I used a fresh install of Parallels Desktop 3.0 to access my existing Boot Camp partition. It worked pretty well with the exception of having to...
