I found other threads talking about the XP installation lagging on installing devices at 30-something minutes. I found the solution of setting the speed of something (dont remember what its called) to disabled. This didnt work. Also, i tried creating both an iso and dmg but these did not fix the problem. I am using a new Macbook (less than a month old) with leopard, intel. Parallels desktop 3 A liscensed copy of Windows XP SP1a that came with a dell computer
Found the problem if anyone else has the problem, heres the answer (well, if you have an xp cd) Go to configuration, and click on the boot tab Set it to boot up from the CD/DVD-Rom first When it says "Press any key to boot from CD", press any key it will then copy all the windows files and restart when it restarts, DO NOT BOOT FROM CD the installation will complete itslef
Please try also to disable Enable Intel VT-x support and set acceleration level to disabled at Parallels Desktop -<Virtual Machine name>-Edit-Virtual Machine -Options-Advanced