I have some apps running in OS X and some running in my WindowsXP VM. I want to use one USB hard drive to backup both, so how should I format the USB hard drive? Fat 32 or will OS X not write to this? I'm using 3036 build of Parallels and although it doesn't seem as stable as 1970, it's pretty good. My issues are with video resolution when connecting to an external LCD. Seems to always change select the wrong resolution.
the virtual disk is just another (large) OSX file. If you back up your entire Mac disk using a product such as SuperDuper (my favorite), your VM(s) will be backed up as well. You can use any format on which you can install OSX (looking ahead to Leopard and expanded filesystem choices rumored to be included). Note that although FAT32 is usable by both Windows and OSX (but not to boot OSX), it isn't a good choice for backups due to the 4 gig (minus two bytes) file size limit.
