After installation of Parallels 3.0, following instructions I took defaults and placed the (brand new out of the box) Windows XP CD in the drive. I watched it for a few minutes as it displayed what it was doing. Time for a cup of tea. Came back, the Parallels screen was there and the message that the virtual machine was stopped. I clicked the arrow to start XP, the window did the flip and the last message is "Boot from hard disk..." This is not a very encouraging start!