How to set up Windows Folders

I am running Lion 10.7.2 on a macbook pro. I loaded parallels and it all works. I loaded Windows 7 and MS office and again it all appears to work and I can create Word Files and Excel Files.
The issue is when I try to save the file. It defaults to the library in windows and asks for a folder to be created and then will not let me make a new one. I can save to my desktop, but not to the documents folder in windows.
I did save an excel file in the document file in Lion, and then tried to open it and it says error no longer running power PC. It will open the Numbers program, but not in excel.

How do you configure to save excel and word files back into windows folders?

 

First of all - in order to make excel files to be opened with excel in Virtual machine - right click any excel file, choose Get info and specify excel app from /User/Applications(Parallels)/ folder.

To make files be saved on Windows side - go to configuration -> Options -> Sharing and disable Shared Profile