Greetings- We set up a clean install of Win98 SE with Parallels (the 2222 build). Host OS is Ubuntu 7.04. Next we installed the Parallels Tools. After rebooting the Win98 VM, several driver issues yet remained. Attached is a screen capture of the Device Manager window with the various errors showing, and as well the Parallels Video Driver properly installed and working. Any suggestions of how to get the mouse and sound working, for example?
Did you try this: The PCI bridge stuff is a known issue, but doesn't seem to affect functioning of the Windows 98 VM. Your screen shot does not show that the mouse driver is malfunctioning (unless I missed something). Are you saying that clicking in the Windows 98 VM window doesn't shift focus from the host operating system to the VM? The Advanced Configuration and Power Interface (ACPI) drivers are irrelevant to running the VM. I think you can safely ignore them (or their lack of functioning drivers). However, you probably want to set Windows 98 so that is never goes to into sleep mode or hibernation (both the display and the virtual hard drives). Instead you should be able to simply suspend/resume the VM. Similarly, you will likely want to disable any screensavers for the same reason.
I did discover where the drivers for the Sound had been installed by Parallels Tools. I had no idea that was a manual installation. At least the video driver was automatic with the Parallels Tools installation. As for mouse, there does not seem to be a specific mouse driver for Win98. Thus, it is necessary to click the VM window to get the mouse to be controlling the VM, and press Alt+Ctrl to get it back out. Windows 2K/XP/Vista has a special driver eliminating that hastle. Oh well...
You are describing Parallels' Coherence mode, which is not supported by Parallels for versions of Windows prior to Windows 2000. Coherence mode affects more than just the behavior of the mouse.