O.K., multiple problems. 1) I still cannot drag and drop with parallels between the windows. (Mac OS & Windows). I've read a number of posts about updating, which I tried to do, but everytime I check for updates, the system just hangs and hangs. 2) I cannot use a flash USB adapter. It doesn't even show up in explorer. 3) Same problem with the DVD/CD player. However, when I try to access it in explorer, it says there is no disk. 3) I have a program used to convert media files for viewing on an iPhone. However, everytime I run the program, it crashes. 4) I got this error message today: The version of Parallels Tools you are using is inconsistent with the currently installed version of Parallels. We recommend that you update Parallels Tools. Select VM->Install Parallels Tools in menu to install the correct version of Parallels Tools package. However, I've already installed and re-installed the Parallels tools about 5 times. Running a new iMac with Intel processor, Mac OS Leopard with Windows XP.