I was able to recognize the DVD (thanks for the how to), but when I double-click, or click to install, the DVD starts running but then quite without doing anything. Ideas?
Hm. What happens if you insert another disc, can you see that? (e.g. a music disc) Can you mount the Office disk on the Mac desktop? I'm just wondering whether maybe the CD is scratched or similar...
I started again, created a new VM, installed Windows 7, then installed Office 2007 BEFORE I installed the Parallels Tools.
It appeared that in my original VM Windows was identifying the Tools as being the CD/DVD drive, so when the Office DVD was inserted it didn't think it could run install