So, parrys definitely require a block to happen on the side, if not the actual angle, of the incoming attack. The problem I'm finding though is that all the swinging of the mouse to adjust the position of the star is also swinging the camera, which has fairly often my camera leaving the target entirely. In order to respond to the AI constantly switching positions, you are literally moving your mouse around constantly, and depending on the ai, it's not slow either.
Camera is a major issue, for some reason using short swords, I found myself constantly being struck so many times by the NPC opponent that my character was being turned ENTIRELY around, camera no longer facing the opponent. Realistic, but talk about brutal.