SymptomsParallels Tools installation went fine, however the Parallels audio driver could not be installed.
It is marked as yellow in Device Manager.
CauseSome system files are missing in Windows XP. For example, folder the 'Driver Cache' does not exist in the system folder (C:\Windows), or the content of the 'Driver Cache' folder are incorrect.
ResolutionYou need to install the Parallels Audio driver manually.
NOTE: Windows XP installation CD or the most recently installed Service Pack will be required to complete the fix.
You will also need Driver signing policy to be set to Ignore or Warn.
And finally you will need a free Microsoft tool called 'DPInst'.
Follow the steps below:
1. Download DPinst.exe from Microsoft site.
2. Open command window: click Start --> Run and type cmd 3.
In command window type
DPinst /F /SA /PATH "C:\Program Files\Parallels\Parallels Tools\Drivers\prl_sound" /c /D /SW
and press Enter to continue.
4. If the Windows Logo warning appears click Continue Anyway.
5. If the process asks for a Windows installation CD, please insert it to your CD-ROM.
NOTE: if you install the Parallels Audio driver via the Control Panel --> Add Hardware wizard, it will not work correctly. Use DPinst and instructions above for correct fix.