Like a number of other people I've been having problems with USB under RC1. In my case I'm using Windows 2000 and getting a: USB Read Failed: Failed with error 997: Overlapped I/O operation is in progress. The error occurs when I use Microchip's PICDEM FS USB Demo Tool to program a pic microcontroller. This error does not occur on a regular native Windows machine. So far I think Parallels is great but having USB support will really make or break the purchase decision for me. Thanks