Parellels: Your screen, graphics card, and input device settings cannot be detected c

Hey everyone,

First, I wasn't sure whether I should post this here or in absolute beginners, so I apologize if this is the wrong sub-forum.

I attempted to install Ubuntu 12.04 on a Parallels Desktop 8 virtual machine. All the installation seemed to go fine, except upon starting the system an error comes up stating "The system is running in low-graphics mode", "Your screen, graphics card, and input device settings could not be detected correctly. You will need to configure these yourself."

I have the option to, run in low graphics mode for one session. Which does nothing. I wind up with a black screen.

Then, reconfigure graphics --> use default (generic) configuration, or used backed up configuration.
If I try to click okay on use default or backed up, nothing happens, it won't let me select either option.

Next is the option to troubleshoot the error which allows me to view xserver log files, edit configuration files, etc. I have no idea what I would even do with any of this information. ><

Lastly I can choose to exit to console login, which brings me back to the infamous black screen.

Can anyone provide insight on how to fix this?

I'm running parallels on OSX 10.7.5.