drscience said:Step 1--Boot into safe mode; uninstall Parallels tools
Step 2--Boot normally, select custom install of Parallels tools
Step 3--Uncheck "shared applications"
Step 4--Allow installation to complete
I managed to get this to work, with the following additional information I got from VersionTracker forum via MacFixit:
For Step 1, press F8 during XP startup (press it repeatedly, not holding, but over and over, until a text-based menu appears. Choose Safe with Networking (use the arrow key to choose, and the return key to select). To uninstall, locate Parallels Tools folder in C:\Program Files\Parallels. Delete the Parallels Tools folder. And then proceeed with Step 2 above.