DragNDrop Stopped Working

[nbw]

I'm running Parallels Desktop v3188 using a Bootcamped XP Pro SP2 partition. It's been working fine since I set things up and I had been able to DragNDrop files between the VM windows and MacOS without a hitch. It's not mysteriously stopped allowing that to happen. When I dragNdrop I get the usual folder icon with the green ball and plus symbol but after dropping the file never appears in the opposite OS. Also when I try to open the Parallels Shared Folders short cut it opens up but hangs indefinately.

Please advise. I've tried reinstalling Parallels tools as well as doing so after removing the prlsfile driver but that hasn't helped.

TIA

 

[nbw]

USB not mounting either

Also I can no longer mount my USB thumb drive in the VM! What gives? This thing is progressively failing on me. When I try to mount the thumb drive I get a warning dialog which says, "USB device you are trying to connect to the virtual machine is being used by another application. Close that application or unplug the device and plug it again. Then try to connect the device."

This is bunk because nothing else is using it and even if I follow the suggestion I get the same message. In the Windows VM autoplay kicks in when I plug the device in and I select "Open Folder to View Files" and I get the following error message:

"E:\ refers to a location that is unavailable....."

HELP! Thnx.