I installed Windows 7 build 7000 in Parallels 4 build 3810 and it seems that Windows 7 keeps on adding "$RECYCLE.BIN" folders into the Pictures, Music and Documents folder every time I run it. I do not have this problem with Windows XP or Vista. It appears to be a combination of some new feature in Windows 7 and the fact that Parallels 4 merges these folders with the guest and host. Any suggestions on how to stop this from happening?
As those folders are mounting from Mac OS, this is default feature for Windows 7, to create this folder on each filesystem, which doesn't have it, you can disable shared profile, if you do not want to see them
