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I have specially tested Windows XP and Windows Vista
You need to install build 5600, and reinstall Parallels Tools in Windows Vm.
There should be no problem.
Running XP SP2 under build 5600, flickering of windows menus and everything on the desktop quite badly. Mainly immediately after opening. Seems isolated to window and coherence modes.
Going fullscreen then back to window mode sometimes helps.
Running 10.5.3.
Updated both Parallels and OS X about the same time so I don't know what triggered the problem.
Nothing USB except mouse and keyboard connected.
Graphic glitches are a known issue with 10.5.3 and unrelated to Parallels.