drag and drop to OSX and other linuxes

Does parallels support dragging and dropping to and from OSX desktop with Linux running in Parallels? Or do I have to setup a shared folder in Parallels ?
I have now got XP Vista (yuck!) and Linspire 5 Linux running under Parallels and have Parallels tools in Linspire Linux running OK and am considering runnning Kubuntu
I tried the Linspire 6.0 which is Ubuntu based but it gave me other hassles.
cheers guys
 
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