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Solution in my case: Select "Passthrough" on DVD/CD Tried various settings but selecting "Passthrough" seems to have allowed Windows 7 to proceed...
Actually, mine is a retail DVD delivered from Staples. Problem occurs for both the 32 bit and 64 bit install DVDs.
Same problem on Parallels Server I am having this problem with Parallels Server Bare Metal on a Dell PowerEdge. I also had this same problem...
I've encountered the same problem for two operating systems: Ubuntu Server (64 bit) and Windows 7. (both 64 and 32 bit versions) The operating...
Upgrade from 3 to 4, installed the Parallels Tools, etc., but also had the message about the setting "Automatically capture and release the mouse...