Boot from Windows XP CD ISO fails, gets to a blank screen and does not proceed

I'm running Parallels version 7, build 7.0.15107.

I am trying to boot into the Windows XP Recovery Console, off of a Windows XP SP3 ISO. I have selected the ISO file under Hardware > CD/DVD1, and the "Connected" box is checked. CD/DVD 1 is set as the first device in the boot order. In the Mac OS X Terminal, running `lsof`, I can see that the ISO file is open for read.

When booting, the BIOS screen appears as expected, and shows "Booting from CD/DVD" at the bottom. The screen then goes blank, and remains blank for as long as the VM is left running.

In the Mac OS X Terminal I can see that prl_vm_app is running, and is using 99-100% CPU. Using dtruss to trace the process results in lots of output like this:

psynch_cvwait(0x104D516B0, 0x5E9010005EA00, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5EA010005EB00, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5EB010005EC00, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5EC010005ED00, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5ED010005EE00, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5D1010005D200, 0x100) = -1 Err#316
psynch_cvwait(0x102D003D0, 0xCA010000CB00, 0x0) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5DC010005DD00, 0x100) = -1 Err#316
psynch_cvwait(0x102D003D0, 0xCB010000CC00, 0x0) = -1 Err#316
psynch_cvwait(0x104D10E80, 0x320100003300, 0x0) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5E8010005E900, 0x100) = -1 Err#316
psynch_cvwait(0x102D003D0, 0xCD010000CE00, 0x0) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5D2010005D300, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5D4010005D500, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5D5010005D600, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5D8010005D900, 0x100) = -1 Err#316
statfs(0x102E29908, 0x17BA1FA60, 0x102E298F0) = 0 0
psynch_cvwait(0x104D516B0, 0x5D3010005D400, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5D6010005D700, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5D7010005D800, 0x100) = -1 Err#316
psynch_cvwait(0x102E026A0, 0x140100001500, 0x0) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5F2010005F300, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5EE010005EF00, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5EF010005F000, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5F0010005F100, 0x100) = -1 Err#316
psynch_cvwait(0x104D516B0, 0x5F1010005F200, 0x100) = -1 Err#316

I have tried using a different ISO as well, and the behavior was the same. In order to verify the ISOs, I created two entirely new VMs, one with each ISO, and they installed without issue, so the images themselves would seem to be fully functional.

Has anyone else experienced this issue? Does anyone have thoughts about how I should proceed from this point?

Thanks,

- Ian