Unable to get the vm to recognise usb devices - help!

I've loaded Parallels okay I think and have installed Windows Xp on it. Everything seems to be working fine however any time I plug in a usb device, ie printer, memory stick, it says:

"USB device you are trying to connect to the virtual machineis being used by another application. Close that device or unplug the device and plug it in again. Then try to connect the device again."

Please can anyone help me sort this out (in a nice simple way!). I need to print out an important document that is only available to me on a Windows programme on Parallels and I'm pulling my hair out over this.

Sarah

 

Sorted! Downloaded the update...