The default Parallels software settings stop the capslock key signal reaching the guest OS. We have no solution for this and haven’t located a settings in Parallels to change this.
We have a quick workaround for re-activating the signal connection.
Unfortunately this needs to be done everytime the guest OS is started up.
1. Goto: Guest system preferences (snow leopard)
Keyboard control panel
2. Click on ‘Modifier Keys…’ button – lower right (Image 1)
This will open a drop down window (Image 2)
3. Click on Caps Lock drop down menu and change to No Action (Image 3)
4. Click OK to close dropdown menu. (Image 4)
5. Click on ‘Modifier Keys…’ button again
6. Click on ‘ Restore Defaults’ (which will change the Caps Lock Key. back to the Caps Lock option)
7. Click OK and close system preferences.
Issue should be resolved till the guest is shut down