For WinXP I created a local SMB share on the Mac side, and I could see and connect to that fine from inside WinXP. This was great for transferring files. Under WinME (don't ask why ) I can see the computer in the list under Network Neighborhood, but I can not see the share point or connect to the computer. I can connect to other resources on the network, just not anything shared from the Mac side. Also, internet access works fine. Finally, under WinME the Parallels Tool installer hangs when it first starts up (settup up InstallShield). I was able to manually install the video/network drivers so at least it is up and running.
Under further investigation, it seems the ME install is having problems of it's own, maybe related to parallels, maybe not. I've seen similar reports of quirkiness with people running it on x86 boxes. Eventually the Parallels Tools did install, I don't know why it worked one time when it hadn't worked countless times before that, so it leads me even more to question the install itself, not Parallels. Thanks!
