Parallels Transporter question

Ok, I'm trying to migrate my wife's old Windoze XP machine to a Parallels VM on her current MacBook Pro. I've run the transporter and everything seemed to work fine except for the fact that all her old Windows files are intermingled in her Mac file system (like Documents, Pictures, etc). This is not the desired outcome. I wanted to migrate her old Windows machine to the actual Parallels VM with the Windows files also in the VM as part of the Windows filesystem. The way she works with the computer I have to keep her Windows installation and her Mac as two separate entities. Otherwise she'll get confused.

Is there any way to accomplish this easily? Like I said earlier, the migration seemed to work all right although I haven't been able to actually examine what's in the new VM that was created yet. It boots. I do know that. It's just that the old one was an OEM version and I know I've got to update it to our licensed version of XP before I can actually bring it all the way up. I just need to know if her files are actually going to be in this new VM also. Or do they need to be moved from the Mac OS filesystem into the Windows VM?

Thanks for your time!
Tom