After having receintly installed Parallels software on my Mac Book Pro I quickly realized that I needed to be able to share files between my OS X OS and the Parallels / Windows XP Pro OS if it was to be of any use. I found a couple of ways to accomplish this but my favorite by far is detailed below.

Step 1: Install Parallels

-This one is a no brainer. Just follow the installation instructions included with Parallels to install the app and then Windows XP.

Step 2: Install Parallels Tools

Here is a quick how-to install Parallels Tools

Step 3: Stop the Parallels VM

-Click on the Red Square on the right side of the screen if Parallels is running.

Step 4: Enable Shared Folders in Parallels

Enable Shared Folders in Parallels
-First Click on Edit at the bottom of the screen to edit your current Parallels VM
-Second Click on Shared Folders in the left view (if you don’t see Shared Folders, click on the add at the bottom of the screen and add that item in)
-Third Click the check box to enable shared folders and then add in your shared folder by click on the plus at the bottom of the box.
-Fourth select the directory you wish to share. I chose the full home directory but you could just use the Documents sub directory depending on your needs.
-Finally, Click OK.

Step 5: Map the Windows My Documents Folder to the Parallels Share

Map My Documents in Parallels to OS X
-First start the Parallels VM (Click on the green play button on the right)
-Second right click on the My Documents Folder in Windows XP
-Third change the Target of the My Documents Folder to the Parallels Share to map the Windows My Documents to any folder you wish in your OS X directory.

Notes:

-Some initially had problems with the Parallels Shared Folders but they have adressed those and I have had no issues.
-Windows WILL create its own directories for My Music, My Pictures, My Movies etc in whatever directory you map My Documents to.
-I kept everything simple by mapping My Documents on XP to Documents on OS X but that decision is up to you.
-You can set up Parallels to show your share on the Desktop or make sure the share is running through Parallels Tools, that you installed in Step 2 above.
Shared Folders

WARNING:

-You have now opened up your previously protect OS X files and directories to Windows XP. This means any viruses and spyware you may get now can potentially cross the Windows OS X barrier and cause unplesant issues. Proceed with Caution.
-It was my decision that without those files being accessible in Parallels, I had no real use for Parallels, so I set it up. Just remember to use protection 😉

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