Installation on Leopard

I'm a newbie on both Mac and Parallels so go easy on me.
It's a brand new Mac and I just downloaded Parallels desktop 5584. I started to install and everything looks like in went well. I started the application and it then asked for the XP Pro distribution. I had entered a valid and legitimate XP Pro Enterprise key during the install but the best distribution I could find was for a recently purchased Dell Workstation. I fed the CD into the Superdrive and the Configuration window popped up (the one listing the VM Name, the "Stopped" status, and then the details on the configuration. The sidebar has the VM controllers. But here's the problem, all I get is the pretty spinning fan icon (presumably meaning that something is busy) when I bring the mouse overtop of the window. I assumed that it was reading the superdrive and installing the XP distribution but it's taking way too long. What don't I understand about installing, configuring, and/or initial startup of the Parallels Desktop?
Thanks
Steve