Cannot seem to install Windows XP

I have Parallels 5, and whenever i try installing windows xp on a new virtual machine it hangs on trying to load os from the disc in my drive. i look at the disc on my mac and it should work fine. Any advice?

 

Hello Arthur,

Please try creating a .iso image of the Windows disk.

Then connect the same to install the virtual machine.

Here are the steps:

http://kb.parallels.com/en/4917

Thank you.