I had a clean install of XP2 running in Parallels working just fine. For some reason I wanted to be certain I had installed Parallels Tools, so I clicked Actions > Install Parallels Tools. Sounds good so far.. well, now every time I launch a Windows program from my dock with my VM paused, it resumes Windows, launches the program, and then tries to install Parallels Tools again. No matter how many times I install, it comes up every single time. I have tried to uninstall Parallels Tools via the Windows Add/Remove Programs utility then reinstall, same problem. I have removed Parallels via the Uninstall program in the latest DMG, then reinstall Parallels but the problem remains. I can cancel the installation and it works fine, but it is annoying and frustrating to get this popping up every single time I launch Windows after it has been paused. Anyone else run into this? Know of a fix? I searched the forum but was not able to find this issue (could be my searching abilities as well). Thanks.
Awhile back after installing an update, I had the same problem. Ended up that Parallels Tools had created a disk image of itself and it was mounting the image in the CD/DVD ROM every time I booted. All I did was select Default CD/DVD ROM from the Device Pull Down Menu and it went away.