Yesterday, I received notification of new update to parallels which I installed + new tools. Since then I have been unable to read or write anything from the Mac Home directory. Example: Set up a test with WordPad. Did a "Save As" and navigated to "My Network Places" .Home on .psf comes up On clicking on ".Home on .psf" I get the error message "The drive or network connection that the shortcut 'target.lnk' refers to is unavailable. Make sure the disk is properly inserted or the network resource is available, and then try again" This all worked fine before the update. I then put back my Parallels 3.0 master disk and reinstalled as "update" + tools. Problem is still there.
I just posted the .psf problem. There is a workaround. Navigate to "My Network Places" Click on .Mac on .psf Now you can navigate right through the whole Macintosh hierarchy of files back to Users etc. and find the correct directory.
Sorry guys - I searched and searched the help and it wasn't until a seasoned Parallels user showed me how to go to Edit Virtual Machine in Parallel Desktop. Then Select "Shared Folders" then add a shared folder. Now everything is working again.