Windows based application's window looks normal when the virtual machine is running in window view mode mode. When the view mode is changed to coherence only a part of the application window is visible - rest gets cut off, it looks like a screen artifact (patch of window) on Mac desktop. The issue is applicable for all applications. Changing the screen resolution and following http://kb.parallels.com/112476 did not help.
you need to reinstall parallels tools Please refer to the KB http://kb.parallels.com/8969 for clean manual reinstall