I have a GemPlus GemPC Twin USB SmartCard reader/writer that works within an XP Parallels VM, but not within a Windows 2003 Parallels VM. I know the device works in 2003 on real hardware, so it isn't a general OS compatibility issue. (I also tried in Longhorn Beta 3 with no luck... Vista is next.) The strange thing is, the device is properly detected and the drivers are loaded. It exhibits normal behavior like knowing when there is a card inserted or not. The problem comes when something tries to read data from the card... in XP, it works great, but in 2003, it hangs and never comes back (until I "remove" the device from the VM). Since I have to use a SmartCard for VPN, I can't simply ignore the problem. Thoughts? Anybody else trying this? http://www.gemplus.com/products/gempctwin/
Turned out this was an issue with the Windows Update drivers not working. Downloading the latest drivers from Gem worked fine.