Using 4.0.3848 (as well ad 3846 and prior version) I'm seeing what I think is a pretty big security issue. Some of my Windows VMs are getting read/write access to all of the drives that I have mounted in my mac desktop. It's behaving as if SmartMount is ON when in fact I set it to OFF. This is not supposed to happen, and I think it's a major security risk/ bug. Looking at two VMs: VM #1 (XP SP3) : this one suddenly had Smart Mount enabled : i know for a fact I disabled this in the past when I installed., so something seems to have automatically re-enabled this setting. That's not good. I turned off Smart Mount again, rebooted, and now the problem has gone away. VM #2 (XP SP3) this one claims that Smart Mount is OFF, and yet when I boot it up it gets r/w access to all my disks. I shut down, turned SmartMount ON, then rebooted. Shut down, turned SmartMount OFF again, then rebooted again. Finally the problem went away. In both cases, I do have a single shared folder set up. So -- it seems that there are perhaps two bugs: Bug 1 : something (upgrading Parallels? upgrading Parallels Tools?) is silently re-enabling Smart Mount. Bug 2 : sometimes Smart Mount appears to be OFF when it is in fact ON. Anyone else out there confirm this? Seems like a *major* security bug to me.