Following BenInBlack's advice I disabled the CD as well. This made no difference.
It's almost as if Parallels Desktop should set a flag on the VM once Parallels Tools has been installed to indicate that this is the case, but that this isn't being set. I also tried uninstalling the Parallels Tools and reinstalling last night but that doesn't seem to have made any difference either.
Last edited: Aug 15, 2007