Flash Drive Doesn't Show Up

I recently upgraded to Snow Leopard and Parallels 4.0. When I plug my flash drive in, it asks if I want it to appear on my Mac or on my virtual machine. I select virtual machine and it shows up under Devices > USB. However, it doesn't show up in My Computer, it doesn't show up when I go to save things and when I click "Safely Remove Hardware," it doesn't show up as having any hardware inserted.

The flash drive works fine on the Mac side and on other Macs/PCs I've plugged it into.