does your parallel blink?

isnt this a transition setting?
mine does the cube rotating thing.

 

It's probably just changing screen resolutions.

 

What is happening here is, Parallels is switching to full screen first, then changing the resolution to your Mac's screen resolution. If you set Parallel's resolution to the Mac's screen resolution while in window mode, then go full screen, you shouldn't see the blink.

Going back doesn't blink because the Mac desktop is already at your Mac screen resolution.

 

Beyond that.. you're WASTING so much RAM with all those open Dashboard widgets. Whittle that down if possible.

 

If you say so..

Just know that those things are eating up your RAM, so the first indicators of beachballing from lack of RAM.. Dashboard is your culprit.

 

Looks to me like he had Parallels confined to an alternate Desktop using some Virtual Desktop software.
I don't believe it was Spaces or Leopard.