USB device always shows up in guest OS

I have Parallels version 4.0.3846 desktop for Mac with an WinXP guest OS. When I connect my flash memory card reader into the mac, it appears as a drive letter in the guest OS. I have DE-selected all the mapping of OS X drives in WinXP and Windows drives in OS X - I'm using Tiger.

My setting for USB devices, when a new device is plugged in is to connect it to the computer. Yet, Parallels insists on creating a network drive under the guest os in addition to the mac. Worse, this sometimes causes a device disconnected warning from OS X. Still worse, once it shows up I need to reboot Windows to remove it from the folder listing.

So, every time I use my SDHC card reader, I have to first suspend Parallels, then resume after I disconnect the reader.

 

In the virtual machine configuration, disable SmartMount, then shutdown/restart the virtual machine.