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It's not a "bug" per se. A virtual machine is typically a closed system, without any(much) interaction with the host system. Hardware, hard disk drives, etc. are emulated through Parallels. That's why you most likely have a .hdd file taking up several gigs of your hard disk space.

 

Only way to access your Mac file system is to do it through Shared Folders, wherein the folders/drives show up in your virtual XP system as network locations. In the newest Parallels beta, you can also choose to just share your Home folder, which is usually enough.

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