Downloaded Upgrade, Where are Parallels Tools After Install?

I apologize if this is a redundant question - I've looked everywhere for it and can't find it.

When I upgraded parallels from 3.0 to 4.0 I downloaded the package off of the website.

I've converted my old virtual machine to the 4.0 format.

I now have it open. I go to Virtual Machine -> Install Parallels Tools to Install Parallel Tools

The next screen asks for the install cd to be inserted or to click 'next'

I click next and the virtual machine goes off into a field and begins to communicate with bunnies. It looks like it's thinking, but then one of a few error messages occurs and parallels tools never get installed.

Any suggestions for the mechanically challenged?