Paul Saenz wrote:
Tell me, Isn't it true that:
You can set up the vm so that it can only see the hard drive space that you have allocated for it?

Sure, if you put that VM in a network area that cannot "see" the host OS.

And as long as you don't move files from the mv to the host os, (as Manny said) then the vm won't be able to see the hard drive?

Not necessarily, remember, if the guest VM is "visibile" network-wise (NAT'd, on the same subnet, etc), then there is a chance it can "see" the host OS, and hence the rest of your hard drive.

So, if you didn't have a password on your host OS, the guest VM could easily make a call like "net use z: \\hostBox\c$" and then go to town nuking stuff, or even installing root kit on that remote z: with tools like psexec.

Make sense?

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