Mouse cursor does not automatically get captured when moving over Virtual Machine window.
One of the probable reasons for this problem is that the Smart Mouse option is not enabled. It is the very feature that determines, whether mouse pointer is hovering over Virtual Machine window and automatically switches, if necessary, the area of its operation.
- Shut down virtual machine if it is currently running.
Enable SmartMouse feature
for Parallels Desktop 8 and earlier:
Click on Virtual Machine in Mac menu bar > Configure... > Options > Advanced tab > set "SmartMouse" to On or Auto
for Parallels Desktop 9:
Click on Virtual Machine in Mac menu bar > Configure... > Hardware > Mouse & Keyboard > set "SmartMouse" to Auto-detect for games or Don't optimize for games
If the issue persists:
- Launch the Virtual Machine and go to Start > Control Panel > Programs and Features ("Add or Remove programs" in Windows XP) and Uninstall Parallels Tools,
- Restart the Virtual Machine,
- Install Parallels Tools by clicking Virtual Machine menu > Install Parallels Tools.