problems copying files from HOST to VM

I can't seem to be able to copy files ( regardless of size) from the HOST Box to any VM's on the host. When I initiate a file copy, it hangs up on 'preparing to copy', and the copy eventually fails.

Copying files from the VM to the host works just fine.

Copying files from random physical machines to the host, or the VM , also works fine.

The problems seems to be exclusively with Host to VM copy operations.

details:

Host Box: windows server 2003

VM: windows server 2003

VMWARE: GSX Server 2.5

networking: set to vlance

any suggestions? known issues?