I recently had to install the Office 2007 FileFormatConvertor utility in my XP VM to read a file someone sent me. Last night, I selected a doc file in the Finder, expecting Office v.X to open up, low and behold Parallels fired up, and brought up the XP VM. Looked at the Finder file properties and lo and behold, it was set to launch the Msoft file convertor under XP. Parallels should not make adhoc changes to my host computer such as this. Hopefully setting VM security high takes care of this. What other Parallels 3.0 features expose the host machine to the Windows VM I wonder ?