installation stops in step 4

I have a standard Intel MacbookPro with 4GB of RAM and Windows XP happily installed on my bootcamp partition.
Just bought parallels. When starting it up, it got to step 4, said i had to continue manually. I did so by logging into my windows as instructed. It has now gone into a continuous loop in the "restart windows" console screen, telling me my scsi controller is not installed, asking me to select an installation option from the standard (Safe Mode, Safe Mode with networking, etc). No matter what i select it tries,fails and comes back to this loading screen.
When following the intstructions from an article on this site, it said to select the "Use my Boot camp partition" in the configuration editor options. I do so but it tells me i have a disk error.

Please help.