Can't install Windows 7

Installation of Parallels went fine, but when it comes to where I install Windows 7 as part of the VM setup, Parallels doesn't recognize that my disk is in the drive. It pops up a message that says:

"The CD/DVD disc is not yet ready. Make sure that the installation disc is inserted into your Mac's CD/DVD drive and this drive is not used by another virtual machine".

It seems my Win 7 disk is not recognized on my mac (it's not the CD drive...I tested other software disks to be sure). I have an Intel Mac Pro (purchased mid-2007) running Snow Leopard 10.6.2. My copy of Windows 7 is brand new (just purchased yesterday) and I tried using both the 32-bit and the 64-bit disks. Neither disk even shows up in my Finder window, they both just spin up, then eject. BUT, when I did try inserting my disk on a friends' mac (which is newer than mine) the disk does pop up in the Finder window.

Help would be greatly appreciated.

Thank you.

 

In for the response.

i have the exact same problem. I've actually tried from an ISO file on a USB as well as the Windows 7 disk.

I tried both 32 & 64 bit versions. Every install comes up with the exact error.

I tried an XP install and that worked fine.

 

Anyone from the Parallels team have any ideas? I'd really like to be able to use the software!