Thank you Parallels for USB functionality in the new beta. I was able to have Parallels grab and have XP recognize the GemPlus GemPCTwin smart card reader, and I can connect using the VPN. Thank you. Whew. I had one foot in boot camp and the other on a banana peel. A couple of lingering issues: 1) The pcscd process in OS X still tries to grab the smart card. I have to kill this process in order to allow Parallels to grab it. Is there any way to tell OS X that I don't want pcscd to run when a smart card reader is attached? 2) When rebooting XP inside Parallels, if Parallels still has possession of the device, the reboot will hang until I tell Parallels to let go of the device. Then the reboot proceeds as normal. Then I have to repeat the process of killing pcscd and selecting the smart card reader from the USB menu in Parallels. Nothing that can't be worked around, but somebody who hasn't been around the block with a similar device might think Windows has hung when it really hasn't. Thanks Mike