After selecting a directory to share, it appears in the virtual machine's shared folder list. On the list of things we absolutely hate though is when something you pick (a directory for example) is so long, you can't (a) easily see the entire name of the entry or (b) resize the window so that you can see the entire name. At least with Windows applications, this seems to happen quite often. Why this box isn't resizeable, we have no idea. But we strongly suggest to Microsoft that it correct the problem soon (here and elsewhere in the company's applications and OSes where this nasty UI problem occurs).
For David Berlind's write-up on The Virtual PC 2007 User Interface, see his post
in ZDNet's TestBed blog.