I just installed the latest FreeBSD 8.2 distro using Parallels Desktop. Problem: Whatever I type in the Bash/Shell it is not echoed on the screen. It's behaving like a password prompt. As soon I hit return it's displayed though. This is really annoying and I've no idea what to do.
It sounds like it may be an issue with Parallels not capturing the keyboard input correctly. Try clicking on the VM to force capturing the mouse/keyboard, and see if that makes a difference. If that doesn't fix it, you can try using VirtualBox to see if it shows the same problem.
Just to let you know, FreeBSD uses csh as the default shell, not bash. You should be aware of this since some things are done differently, such as setting environment variables.