full screen mode not working after update to 8.0.18354

My Parallels / Windows 7 VM was working perfectly in full screen mode but after the update to Parallels 8.0.18354 it no longer works correctly. I am running OSX 10.7.5 with all the latest updates.

When I go to full screen mode Parallels goes into full screen but the Windows 7 window shrinks to a 5x7 inch area in the bottom left corner.

If I exit full screen I can stretch the Windows 7 window to fill up most of the screen but as soon as I try to go into full screen mode again it shrinks to the bottom left corner.

Any ideas?

Thanks

 

Started working today. Not sure what was causing the issue since my computer was not rebooted. Quit parallels and resumed VM and it happened to start working. (I had tried that earlier and it didn't work). Ghost in the machine I guess.