I have been trying to get resolution of this issue through support, but clearly not getting to the right people. After upgrade to initial release of PD8 (from PD7) Mountain Lion dictation feature worked like a charm within the Windows 7 VM. But after upgrading to the latest release (8.0.18101) this feature no longer works in the VM (works fine in the MAC side). This is true regardless of mode (full screen, windowed, coherence) and regardless of what program on the windows side I try to use (notepad, word etc.). Nothing happens at all when I hit Fn Fn within windows (when in mac side it works as expected). It seems like the Fn Fn is not "getting" over to the mac side to cause the dictation feature to kick in. Again, this appeared to work fine with the prior PD8 build, and is NOT working (at least on my machine), with PD8 8.0.18101. I have tried uninstalling and reinstalling both PD8 and Parallels tools. Would appreciate a response from Parallels.