UPDATE: After several days of this, development was just too difficult and, sadly, what I reverted to was keeping my source inside the Parallels virtual disk. I am still deciding whether that is a useful tradeoff. The downside to this approach, I am finding, is that you need to be more deliberate about recompiling, or restarting the web server, as changes during development don't just magically appear anymore. It is a bit heavy-handed, but gets my builds to work again. It too is a Registry hack, but this one simply turns off file change monitoring for ASP.NET. I finally found another solution that avoids Samba and just uses the regular Parallels Shared Folders. Unfortunately for me, the Registry hacks to fix that problem never worked for some reason. I tried all sorts of things, including using Samba on the Mac side to share the directory, which led into the 'too many BIOS commands' error described elsewhere.
Other, procedural applications, built just fine, by the way. I recently flipped over to putting my source code onto my Mac volume, so I could use Time Machine to back it up and immediately got this same problem with my ASP.NET app.
