Hi, I have successfully installed Mac OS 10.7.1 Lion as a Guest OS, I am using the new Parallels 7 with Mac OS X 10.6.8 as the Host OS, everything installed OK and is running fine with no issues. The problem is that the Guest OS (Mac OS X Lion) display resolution is fixed to 1024 x 768, is there a way to change this ?, I tried to install Parallels Tools within Lion but I think they only work with Windows as a Guest OS, please your advice, thanks a lot
I had the same issue but was able to select whatever resolution I wanted after installing the parallels tools and restarting the VM.
From the Virtual Machine menu select, "install parallels tools" and then click continue. The weird thing about Lion is that by default it won't show you on your desktop the disc that parallels mounts to your machine but if you open a finder window, you should be able to see it and click on the installer.