Separate names with a comma.
I will ask, as you've not actually said....
You do have Windows installed in Bootcamp? (Not just running in a VM)
Have you tried running in 'compatibility mode', also running as administrator?
I'm not sure after all this time but it sounds like you would need the autoexec.bat and config.sys to load your cd rom drivers with mscdex etc....
Are they USB keyboard/mouse or bluetooth?
If your XP isn't SP2, why not use nLite http://www.nliteos.com/guide/ and incorporate it into your installation disk.
I think you'll find it eventually won't start, if it's not activated!
The XP on your laptop is only licensed for your laptop.
Presumably you can't use Bootcamp because your XP wasn't SP2?
You could try nLite and combine your XP and SP2/3 downloads to make a new...
http://kb.parallels.com/en/6659 should enable the conversion.
http://forum.parallels.com/showthread.php?t=90459 if you get a freeze during the...
Just realised after my previous reply that you've already upgraded to Snow Leopard, in which case you wouldn't be able to change your vm from...
1. PD4 will convert your existing vm for you
2. For peace of mind make a copy of your XP vm first.
3. Close down your vm, rather than suspend...
Excuse the probably dumb question, but your printer is connected to a parallel port?
Where did you get to with your PD4 upgrade? Did it finish converting?
Not that it gets you any further, but that sounds like an XP problem rather than Parallels. Any backups?
Couldn't you just have excluded the VMs from Time Machine and do an occasional manual copy for backup?
This might offer some help:
Before installing PD4 tell your friend to properly close down all VM's. (Do not suspend) Suggest he makes a backup of the VM's for safety.
As it's a 'reinstallation CD' I suspect it will only work on your Dell. If you do ever have to use it, it will probably wipe your drive before...