I can read and write mac files from my windows XP vm, but I can't figure out how to access windows files from the mac side. From finder all I can see is Documents/Virtual Machines/Windows XP Professional.vmwarevm. It just looks like one big file.
Ok, I answered my own question by watching the video at http://www.youtube.com/watch?v=fxNqdE7IanQ
I guess what I was looking for is a way to look at the windows directory structure from OS X, but it doesn't work that way. You create a shared folder and put anything you want to share in there or a sub-folder of it. In my case, my user directory in OS X is shared, so almost any file I can find in finder I can also access in my windows virtual machine. I just won't save any documents under the windows directory structure, I will put them all in the shared space.