The bug reported here still exists in Beta 4. When I initially reported it, i was told that this bug exists because of the lack of dual-monitor support. What gives??
Even in full-screen mode this behavior exists. If I have a full screen VM running on my external monitor, the mouse is useless because as soon as I initiate a mouse cliick, my mouse is released from the VM and mouse cursor pops over to my other (main) display.
just install the client tools on the Windows VM and the problem is resolved... I originally posted about this here: http://forum.parallels.com/showthread.php?p=1867#post1867