Running WinXP SP2 inside of Parallels Desktop 3.0. I connect my 5G iPod to my Mac Book Pro with USB Controller set to "Autoconnect On". PDT pops up a warning saying that I can't access the new USB device because it is in use. How do I stop that from happening?
What build of Parallels Desktop 3.0 are you using? Try disabling iPod disk use from within OS X iTunes and make sure that OS X iTunes is not set to launch when the iPod is plugged in.