Shared folders are folders in your MacOS X file system that are visible to the guest OS also. These folders are used for exchanging files between the primary OS and virtual machine or between several virtual machines. To make shared folders available for your guest OS, the following steps are necessary: 1. Set up the Shared Folder for your VM. To do so power off the VM, then click Edit->Shared Folders. 2. Select the Enabled option. Click OK in the Configuration Editor, then click Save to save the Virtual Machine configuration. 3. Power on the guest OS. Сapture input in the Virtual Machine. 4. After logging on to the guest OS, right-click on â€œMy Computerâ€, click â€œExplorerâ€. 5. Expand â€œMy Network Placesâ€ in the left tab. 6. Expand â€œEntire Networkâ€ in the left Tab. 7. Eureka! You see â€œParallels Shared Foldersâ€. Please note that it is not recommended to share any system files (such as Applications) with your guest OS. For now, there are three known issues about the Shared Folders: * Shared Folders feature is not available for Windows 2000 guests. * It is not possible to create subfolders in Shared Folder from inside guest OS. * It is not possible to clear â€œread-onlyâ€ attribute for the file in a Shared Folder from inside guest OS.