If I understand correctly, you have XP in a VM and are trying to copy files into it from the Mac environment, specifically a My Programs folder from another (presumably XP) installation.
You have several choices, but formatting FAT32 won't help. Another thing to consider is that simply moving My Programs to another installation will not install all the programs because you are not moving the registry entries, so even if you successfully move over the files, you may not get the result you want. Many applications also install components in other directories.
If you want to move files between environments using the latest release, build 1970, you can set up a shared folder, or share either the source or destination folder on the network, and attach from the other environment and do a network copy. You can also copy the files to a USB flash device such as a jump drive, then attach the drive in XP and copy files.
If you want to install the latest beta (with the risks that come with running beta code) drag and drop between environments may work.
Last edited: Jan 28, 2007