Since upgrading to Lion and upgrading to Parallels 6 I am unable to connect my usb devices to the virtual machine despite the setting on parallels. Anyone having this problem? Any solution? I am on a 2010 Macbook pro 13". had snow leopard and Parallels 5 and windows 7. Upgraded to Lion. Forced to upgrade to parallels 6. Now no USB is correctly connecting to the virtual machine. They are being grabbed by the Mac. Can be seen through windows explorer as a networked drive. I have two encrypted USB devices one is a Sandisk cruzer professional. Its software will not run as it says it needs to be run off a usb drive and not a networked drive. This was my who reason for using parallels in the past and it always worked until I upgraded 2 days ago. When you look in the windows device manager USB mass storage device has a warning saying could not be loaded. This is the same for all usb devices tried so far encrypted and not. And this happens no matter what USB setting in parallels, tried connect directly to VM, and tried the ask me option. Same result always grabbed by the mac. I have found no advice for this elsewhere.