My guess is that the "XP mode" should have some drivers preinstalled to allow auto sharing your drives without your consent, but in a more serious virtualizatino environment you must treat the virtual and real PCs as two different things. The best choice I think is to use a regular network share on your real PC and make the virtual access it thought the virtual network, or even access the hidden administrative c$ shares.

Quote: Originally Posted by
OlHenry
I had this problem once a long time ago. The problem is your file system. Win98 has a fat32 and Windows 7 has a NTFS file system. The OS with NTFS file system can read a FAT32 file system but not the other way around.
I was running on a duel boot system at the time but I would assume the same file restrictions apply.
Good luck
OlHenry

While it's true that Win98 don't knows about NTFS, it doesn't matters here. The systems cannot see each other because they behave exactly as two separate and totally independent computers. For that to be a problem you have to port the HD from one machine to another.