Sorry about all the questions, I'm really new at Ubuntu and just want to see this work. Are the Parallels Tools supposed to allow you to move files from one OS to the other?
Parallels does not (Yet) support drag and drop file sharing between Linux VMs and Macs. The tools do allow you to move the cursor between a VM and Mac. I share files via Chat, which works OK if a bit kludgy I do wish the Parallels team would pay more attention to the Linux side of virtualization, and enable ACP, etc.