After all that we've tried, I think there's just something wrong with the disc, though it shows no visible scratches. I almost wonder if MS made the academic edition with an expiration date or something--as I did use that CD to install XP on a Dell a few years back. Thanks for everyone's help!
additional data about the disk
It's a Microsoft Windows XP Professional, Includes SP1, Academic Edition. I also tried loading it up under boot camp (I know, the docs say SP 2 is required, but I wanted to see what would happen--I got the same error.)
still no dice w/ image files
OK - thanks to the tips, I was able to use the image that I created, but I'm still getting the same exact error--(only much faster now that it doesn't have to access the CDR) that I need another windows CD. Now I'm wishing I hadn't tossed that version of 98 I had...
burning iso images
Thanks! I created a disk image, using disk utility but it doesn't seem to be an iso image--it had a .cdr extension--do I need Toast for this job? Or are there alternatives?
I have an OEM copy of Windows XP that I've been trying to install --I have the Virtual Machine up and running, it goes through the setup sequence and then I get an error that says:
"Please insert one of the following windows product CDs into the CD ROM drive: Windows XP Home..." (see...