Personally I spent last half day not getting this to work. And never getting it to work. Just downloaded this afternoon.
Funny how old-school Parallels is. I downloaded Windows 7 about a year ago.. and did not get an ISO, nor DVD. Just something that I burned to a USB drive. Parallels was NOT able to read this. It couldn't even read the USB. I had to create an ISO out of the contents of the USB,.. it didn't even work then.
When was the last time someone bought a Mac with a CD/DVD player in it? Who buys those? And again, an ISO file is NOT what I get when I download my Win7 installation.
Hope Parallels reads this. Move into 2013 guys.