Upgraded to Ubuntu 13.10 - mouse not working, launcher & toolbar missing

I have not yet given up on this issue...however, I installed a new VM based on the Ubuntu 13.10 (64bit) ISO image (in parallel to the existing VM I upgraded from 13.04 to 13.10) and it worked fine with my existing Parallels 8 installation which I find somewhat strange.
 
Thank you, FazlurR for the excellent step by step directions! They worked perfectly, and better yet I do not get any errors on reboot either.

Thanks again!
 
Update on 13.05.2014

I installed 13.10 64 Bit ISO, after the upgrade from 13.04. to 13.10 failed.
Sadly, the compiler error is connected to a kernel version > 3.10. Ubuntu 13.10 already has 3.11. So: same compiler error. Parallel Tools 8 is broken.
 
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