This is my configuration. - iMac 24 - Mac OS X (10.5.6) - Parallels 4 (upgraded from Parallels 3) - Windows XP Pro SP2 (upgraded to SP3) This is my problem. I'm in Mac OS. I create new folder on HFS disk. Then I create new folder inside that folder and keep duplicating it until there are at least 700 folders inside. Let's round this to exactly 700 for this example. Then I switch to Parallels Windows and do a folder count - it says 696 objects!? How?! Here are the details. Then I go back to Mac and move this to memory stick that is FAT formatted. I go back to Windows and check that same folder on memory stick - it says 700 objects. That's OK. Then I move it back to HFS disk (now the other one that is external) and it says - 696 objects again?! If I move around this main folder (inside which are all other folders) through the Windows there will be some folders missing on the target location after the transfer. Huh... do I have to notice that this thing (bug?) is DANGEROUS?! I noticed this problem accidentaly when I was looking for one project folder among hundreds of other projects folders. This was under Windows. I couldn't find the particular folder so I tried with Mac OS and then I found it. This is when I started with testing. The conclusion? I think something is wrong in Parallels 4 with HFS. Because I didn't had that problem in Parallels 3. I don't know what will happend with other version of Windows, or Linux, or any other OS. Parallels team should do a base test and see the things for itself. However, all other people could to the test with empty folders and reply here the result. In the meantime I will reformat external HFS disk to FAT.