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A further update: I've followed the instructions outlined in two knowledgebase articles: http://kb.parallels.com/en/8969 and...
I'm seeing the exact same problem after upgrading. Parallels begins the tools install, and then rolls back then install and pops up a dialog...
I had the exact same problem with 6.10, so I tried 6.06 instead ... which installed OK, but gave me trouble on reboot. Odd, since I had...