Multiple User Accounts Install Problem

Today installed Parallels v7.0.1 and WinXP Pro SP3 onto Mac Mini on Lion 10.7.2. Windows ran ok on my main admin account, but when I logged into the 2nd "Standard" account and clicked on Parallels in the Applications folder, an install window for WinXP popped up, which confused me as I was certain that I installed Parallels and WinXP for all users. Should I reinstall WinXP again for the 2nd user?

I found this document on the Parallels website entitled: How to share a VM with several user accounts on a Mac. Step 1 states to "Open Virtual Machines Directory", but I'm a Parallels newbie and have no clue where the "Virtual Machines Directory" is located. I went out of coherence mode to see if there were other options or preferences for Parallels, but have no clue where to start. Can someone please inform with step by step, detailed instructions? I'm not sure if those instructions pertain to the newer v7.0 version.

One more thing, IE is not able to connect to the internet and I have no idea why.

Thank you.

 

In the Parallels Wizard, I click on "Add Existing Virtual Machine", and in Users>Shared>Parallels I found a folder entitled "Windows XP.pvm". The problem is the folder has a red circle with white line through it, which I assume is a permissions access denial indicator. When I double click on it, I get a pop-up "The specified bundle is invalid. The bundle does not contain a valid Parallels virtual machine. Problem ID: 15195

I spotlight searched for the config.pv file, but couldn't find it. Should I just create a new virtual machine for this user?