Integration between Win XP SP3 and PD5 doesn't work for main XP user account

I am having an odd problem with PD5 and Win XP SP3 guest:

- the guest was a complete copy of an old IBM X31 Thinkpad XP Pro, moved into PD5 with
the PD Transporter tool.

- for the main account (administrator-equivalent) on the XP machine, and using "Window" mode desktop integration doesn't work, e.g.: I have to hit Ctrl+Option to release the mouse+keyboard out of the VM

- 2 Parallel services and 2 processes belonging to it are running on the XP guest.

- desktop integration works after booting the guest, while still on the Windows login screen, prior to login and continues to work if logging into another account that was created a while back. Changing that account to Administrator-type does not break this - it's a regular user account otherwise.

- if locking the machine, and going back to the login screen, integration still wouldn't work. Logging out of the administrator-level account makes integration work again.

What could possibly break integration the way I described it?

There's a number of entries in the log: (C:\Documents and Settings\[username]\Application Data\Parallels\parallels.log) that I don't understand, but that may be immaterial here.
An excerpt:


11:29:54.078 W PEUTILS /sga_extracticon:3372:5bc/ Virtual part of resource data directory will be ignored in "C:\Program Files\Spybot - Search & Destroy\SDShred.exe"
11:29:54.125 W PEUTILS /sga_extracticon:3372:5bc/ Virtual part of resource data directory will be ignored in "C:\Program Files\Spybot - Search & Destroy\SDUpdate.exe"
11:29:54.703 W PEUTILS /sga_extracticon:3372:5bc/ Virtual part of resource data directory will be ignored in "C:\Program Files\Synergy\uninstall.exe"
11:29:54.703 W PEUTILS /sga_extracticon:3372:5bc/ Virtual part of resource data directory will be ignored in "C:\Program Files\Taskbar Shuffle\taskbarshuffle.exe"
11:29:54.781 W PEUTILS /sga_extracticon:3372:5bc/ Virtual part of resource data directory will be ignored in "C:\Program Files\TeraTerm\unins000.exe"
11:29:55.484 F PEUTILS /sga_extracticon:3372:5bc/ CreateIconFromResourceEx() err 0, id=3, lang=1033
11:29:55.593 F PEUTILS /sga_extracticon:3372:5bc/ CreateIconFromResourceEx() err 0, id=2, lang=1033
11:29:55.656 F PEUTILS /sga_extracticon:3372:5bc/ CreateIconFromResourceEx() err 0, id=9, lang=1033
11:29:55.750 W PEUTILS /sga_extracticon:3372:5bc/ Virtual part of resource data directory will be ignored in "C:\Program Files\WinRAR\WinRAR.exe"
11:29:55.937 W PEUTILS /sga_extracticon:3372:5bc/ Virtual part of resource data directory will be ignored in "C:\Program Files\WinSCP\WinSCP.exe"
11:30:00.406 F PEUTILS /sga_extracticon:3372:5bc/ CreateIconFromResourceEx() err 0, id=7, lang=1033
11:32:00.187 W DESKUTILSDLL /DesktopUtilities:3372:9ec/ Can't read taskbar settings from registry
11:32:00.437 W DESKUTILSDLL /DesktopUtilities:3372:9ec/ Can't read taskbar settings from registry
11:32:56.625 W DESKUTILSDLL /DesktopUtilities:3372:9ec/ Can't read taskbar settings from registry



Thank you.

 

So, is this really just me (single-customer issue)?

I'd really like to know if the Parallels logs shine any light on this...

 

And self-service trumps again:

to overcome this particular problem, I went to
Configure->Options->Services->SmartMouse,
and turned it from 'auto' to 'on', which will
override apps that prohibit moving the mouse "out".

Why the entire Windows XP desktop would act this way remains
unsolved.