Installing XP iso onto Boot Camp partition

My DVD drive doesn't seem to like my XP install disk, so I made an ISO of it on another machine and have transferred it to my Mac running Parallels 3.0. I created a Boot Camp partition, then exited the Apple installer as it requires a real disk.

Using Parallels, I boot up the ISO image and it recognizes the boot camp partition with no problem. I run Windows installation which copies the files to the hard drive and then reboots.

However, at this point, Parallels just freezes. It gets stuck at "Boot from hard drive...". The cursor isn't even flashing. If I reboot via Boot Camp, the partion is not recognized either.

Is there something I'm doing wrong here? Can this be done?

 

Have you tried burning a new install CD from the ISO?

 

The drive in my Mac is acting up. I need to send it in to be fixed but for the moment I want to use an ISO.