I have been experiencing the same issue as the original post. When I try to use parallels 6 to access by Windows 7, bootcamp partition I lose all use of my keyboard in both parallels and mac osx. I am using a 2009 27" iMac (2.66 GHz core i5) with 12 GB ram with an Apple Bluetooth keyboard and a Microsoft Bluetooth mouse. I have noticed that at first parallels will work normally, but it seems to break when I try to attach my XBox 360 controller to parallels. The last time I tried to use parallels I did not try to connect the controller, but I did open the devices menu option, from right-clicking the dock icon, however I did not connect or change any of the devices, and it still froze the keyboard. After this happens if I open the Mac's Bluetooth menu to disconnect the keyboard, it will lock up the Bluetooth menu as well. Also once this happens I have to do a hard reset, hold power button, to close down the Mac. Simply closing parallels is not enough and trying to shut down through the Apple menu will cause the system to get stuck on the gray shutting down screen. I was not experiencing any of these problems before I upgraded to lion. Also I run parallels in spaces #3. I hope this information will help someone figure out the cause and a fix for this issue, because at this point the software is unusable.