I purchased XP SP2 as well. Ever wonder how they can sell a new Windows machine for $300 when the operating system itself costs $200?
Parallels installed properly on my machine. It was when trying to install Windows itself that the "Blue Screen of Death" occured. Since Parallels installed properly, I used their ISO image tool to create an image of the Windows CD on the Mac harddrive. I'm new to Macs, but I believe you can create an ISO image with Mac provided utilities as well. You'll find the Parallels ISO tool under the Parallels directory in your Applications folder. Do not start Parallels itself to create an image.
Once Parallels is properly installed and the ISO image is created, proceed with the Windows install. When prompted for the Windows CD, click additional options in Parallels, and you'll be presented with the option to install from an ISO image. From that point, just follow the Windows prompts for installation.
Last edited: Jun 18, 2007