The source of my installation was from the Windows 7 Professional DVD that I have. I've also tried to install from an image that I created from that installation disc but I still get no bootable device.
My current Macbook has Snow Leopard, 2.26 Intel Core 2 Duo and 2 Gig ram. Its the Macbook unibody before the most recent release (I got it in January 2010). The current HD is 250 GB I believe and I am not using bootcamp.
Also parallels tools is not installed because it wouldn't install. I choose to install it but nothing ever happens. I am using the most current build of Parallels 5 since I updated it a couple days ago. I still got no bootable device when it was a previous build for 5 as well.
Not only didn't Win 7's installation disc not work, I've also tried my Win XP and I got the same result.