Ok so I had the same problem. how you fix it is:
try to start windows in a window, it'll hang on the trying to boot...
in the bottom right of the window click the TOOLS icon
go to boot order select CD/DVD as first (even if you use an image with the win installation cd)
then go to the cd/dvd option and put in the connected & if you're using an image of the win cd select the image.
click ok
in the top of the mac screen go to the parallels menu virtual machine -> reset (or stop/start).
it'll try to boot from cd click a key to start from cd if it asks to (do it before it shows 5 dots .....) otherwise it'll hang again trying to start from your hd.
it'll go to the win installation cd. Go to REPAIR option. go to the command prompt.
win xp -> run FIXMBR and FIXBOOT commands (google how to use them)
in win vista / 7 -> BOOTREC.EXE /FIXMBR and bootrec.exe /FIXBOOT.
both files were on a disk it created called X:\ but I think they can be found on the installation cd too.
if you want to know where type
dir /s fixboot.exe
dir /s fixmbr.exe
dir /s bootrec.exe
i ran the /fixmbr and /fixboot options and now it starts again
Cheers!
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