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Thanks kat. You're talking about whenever the dongle is inserted, I think? Not during the installation of XP, right?Hi Jim,
Yes, USB software security dongles do work with Parallels Desktop. Just make sure you select the xp for you external device, when the "New external device detected" window pops up.
View attachment 9633
This would be after you start your XP VM, insert the dongle into the USB port and the "New external device detected" will pop up, then select the XP VM. This should mount the dongle in your XP VM.
I believe XP is no longer supported by Microsoft, this means if you don't already have a XP VM you may not be able to authenticate/register your product.