I'm purchasing a new iMac Intel with USB keyboard and a USB mouse and will run Windows XP as the virtual "guest machine." Will the Windows virtual machine recognize a USB memory stick while still using the Mac's keyboard and mouse? Thanks!
The keyboard and mouse will "just work". As for the memory stick, it depends on which memory stick you get. Use the search function to find someone who has one that is working and get that kind.
I use a Cruzen San Disk 1 GB USB memory stick that works just fine. I use it to back up Quicken files. My technique is to plug it in after WinXP is up and running. It is immediately detected automatically. I do my backup and then double click the little external hardware icon until I get the windows message that it is safe to disconnect the hardware. At that point I remove the stick and tuck it away in a drawer. Works every time.