I am trying Parallels 7 after being forced to upgrade from 5 by virtue of getting a new imac with Lion; I had a vm with ubuntu 9 "karmic kameleon" installed and after upgrading the tools, coherence was working. I upgraded the ubuntu to 10 "lucid lynx" since the old one was so out of date I couldn't install new apps, then reinstalled parallels tools (twice), but now the coherence option remains greyed out. I am running a windows xp vm in coherence mode at the same time in both cases...