Okay, I've found a "bug" - not too sure who's side it's on. It's a little weird, but all chaos breaks loose when I hit it: Step 1. Run Windows XP in Parallels Step 2. Establish Remote Desktop session from OS X to a Microsoft system Step 3. Copy (as in cut-n-paste) something to the clipboard in the remote Microsoft system Step 4. Paste into a local application on OS X Immediately Parallels locks up, remote desktop freezes, and the local app in OS X freezes. This may sound like a totally bogus thing, but I'm always doing these tasks in remote desktop - any workarounds?
I would add that I have seen this happen in RDC for months if not years. Copy from RDC, paste into Mac app, RDC hangs. I'm not sure why Parallels would be effected, but I kind of doubt it's a Parallels specific issue. I think it's an RDC issue.
You might want to try rdesktop. You have to have X11 installed. I'm using v1.4.1 and it's a lot faster than RDC. The only downside I've found so far is that I haven't been able to play sound over the connection to have it play on the mac.
Doesn't fry Parallels for me! I just Remote Desktopped into a server I had.. opened IE copied some text then pasted it into Yellow Stickes on my Mac.. no problem. Works fine for me.
This is a long standing Remote Desktop bug (and a major reason why I use the open source X-Windows rdesktop instead). On PowerPC, this bug would cause VirtualPC to crash as well.