I am having this problem ever since I upgraded to Parallels 6. This is the scenario and it is consistent with both my VMs(Windows Server 2003 and Windows 7 Ultimate) I plug in a USB stick, I am able to copy data to and fro. Then I disconnect the device the preferred way (using that dinky disconnect icon in windows tray). The next time I plug in my device, It does not show up. I only see a empty drive which says FAT32 with zero bytes. I wonder how many of you are facing this issue. It is strictly a Parallels 6 issue.
Similar Issue . . . I'm using a Win7 VM, but when I attempt to connect a usb flash drive to it, almost nothing happens at all -- no connection. The drive is dismounted from the Mac, but doesn't get the "check mark" in the devices list for the VM. The drive works fine in the Mac. It's formatted Fat32 -- even if it wasn't it should come up in Windows with an error, which doesn't happen. It's very odd, because it works fine with a different drive from the same manufacturer.