This problem just started to develop. I'm running the RC 1 build. When the virtual OS (Windows XP) is first started, and for about 30 minutes, I can access the shared folder (view folders, save from applications, open from applications, etc.). However, after about 30 minutes saves start to hang and I get an error that says "Error 1504: There are too many files open" From that point on I can't access the shared folder again until I quit the virtual machine and relaunch Parallels. Anyone have an idea how to fix this? Thanks, Jamie