Your sentence doesn't work with you after prefer. I would say: I would rather you came. Both the infinitive and the gerund are correct after prefer: I prefer to walk/walking.
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AvangiHi Thomas,
This subject continues to be a mixed bag. What is a poor student to do? People have strong feelings one way and the other, but nobody wants to call anything incorrect.
I take "I'd prefer" and "I'd rather" as more polite, but polite is not always what you mean to express.