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My host is Ubuntu 8.10 amd64, and my guest is Windows XP Professional SP2 64-bit, using Sun xVM VirtualBox 2.1.2.

When I connect a shared folder through the command line and then open Windows Explorer, Windows Explorer immediately crashes. If I attempt to connect any shared folder through the GUI instead it crashes before I can connect it while browsing my shared folders. I can see, in the Windows guest, the shared folders connected, but Windows Explorer crashes when I attempt to click on one.

I couldn't find any topics on this issue when I searched for one. Please help!

I can confirm this. Whenever I try to enable transient or machine share folders
and open Explorer, it crashes. Even if I have removed all shares and boot to XP
and open My Computer, Explorer crashes.

host: Arch Linux 64-bit, guest: Windows XP 64-bit SP2, Virtualbox 2.1.2

There is a bug ticket for this. Please see the Bugtracker and search for your issue there. It should have a fix attached to the ticket. Follow the instructions and with some luck, it works.