I actually solved the problem with another WinXP build. I got a nother WinXP SP1 CD from our department and everything worked out fine. I had the same loop problem as you magrit, but I solved it this way:
1.)Installed XP with CD-ROM boot device first (ne VM with default settings, except boot order).
2.)At the end of the installation the software tells you that it will reboot in 15 second. During this 15 seconds, you have to right click the small CD icon in the right corner of the parallels window and choose disconnect. press Enter.
I tried to stop VM, change boot sequence to hdd first but this did not work. However, it worked like
I described above. You may wanna try this out and report back to the forum if this only worked for me or if this suggestion solved your problem, too.
Summarizing:
1) Change from WinXP SP2 to a BOOTABLE WinXP SP1 works. Frankly, I am not that sure that the other one a bootable CD
2.)Endless loop of install stopped by manually disconnecting CD-ROM before restart of the installation.
Hope to have helped margrite and any other.
And I want to thank everyone for the lively discussion, hope you all solve the problem.
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