mouse not working correctly accessing VM using Microsoft RDC client

I am using the Microsoft Remote Desktop Connection (RDC) client
to access a remote Windows XP machine.
I installed Parallels Workstation for Windows on the remote machine.

I then installed a Suse Linux 10 VM on the remote machine.
(Clearly there are several layers of mouse mapping going on here.)

But when the focus is set in the Suse VM (i.e. parallels console mode or full screen)
the mouse is out of control. Its movements are wildly different than what
is expected thus no control.


I cannot use a seperate monitor since the machine is remote.
I need to have acces to the Suse VM so MS RDC is the perfect solution.

Any help would be great.