I have a VM that started with parallels 2.0 and has been upgraded ever since. I upgraded it to 3.0 and it came up in VGA mode (4 bit, 640x480). I reinstalled the parallels tools (as I was planning on doing anyways) and rebooted and it didn't fix the problem. I then uninstalled the Parallels video driver using device manager, rebooted, reinstalled parallels tools, restarted and it fixed the problem... until I rebooted again the next morning where it came up in VGA mode again. I tried doing the same trick and it isn't working. Any ideas?
Make sure you only have the pvs and hdd file left in your mac directory where your virtual machine is located. Boot windows in safe mode then try again.
Yes, only the PVS and the HDD files were in the VM directory. I just tried it again and I still have the exact same problem.