installing XP on version 4.0, stops at "installing windows" with 37 minutes...

Hello all, i have recently become a mac and purchased parallels to run XP and office pro 2007. I have an old but never used and was still shrink wrap Windows XP service pack 1a disk from when i originally bought my dell in 2002. The disc is a install disk, not upgrade or anything. It loaded on parallels 4.0 fine until the "Installing windows" part in which it said 37 minutes to complete and never finished. I closed it and re-opened it and it asks to insert the XP disc (did), and then another box comes up which says Files Needed... in this box its says:
"The file 'asms' on Windows XP Home Edition Service Pack 1 CD is needed."
"Type the path where the file is located, and then click OK."
It has a box showing:
"Copy files from: (pull down or type in bar)
D:\I386
or
A:\

Now, when the disc is in i double click it open, and in the search bar i can type asms and it brings up the folder (seven files in this folder). Now my inexperience with macs comes in to play. I don't know how to find this file path name or get it to recognize the disc.

Any help would be great, thanks tons.

Brad

 

I also tried to increase the cpu to 2 instead of 1 and still get the same errors....

 

Was it an actual Windows retail CD or a Dell-branded CD?
OEM-branded CDs have code that "lock" the Windows install such that they'll only install on that OEM's hardware.

 

I'm having the same problem. Can anyone help?!