I'm wondering if anyone has had success doing this? In other words, you install Parallels then XP SP1, then update to SP2.
Yes, I did this. I started with an ancient copy of XP home SP1 that has been on a now defunct PC. I then updated with SP2 (I had SP2 on a CD that were given away with magazines). Worked fine. Chris
For me I started with an original XP disk, then applied SP1, then SP2 then software update (god knows how many times) to current patch level.