Having used parallels since v2, I thought it would be relatively easy to transfer a real machine to a vm, but I should know by now that such thinking is tempting fate. I have transported a HP disk across to the mac, and as it had an OEM version of windows XP Pro I purchased a windows XP pro for embedded systems OEM software disk with a product key. In order to use that key I have followed the instructions for repairing the XP installation in http://kb.parallels.com/entry/63/336/. I have adjusted the boot order as suggested, inserted the windows disk and rebooted the VM but it just boots into the transported VM and requires a product key. It won't boot into the setup screen as indicated in the notes. What am I doing wrong, or not doing as the case may be? I thought it might be that the cd was being treated as a mac cd and therefore not available to the VM, but I don't know how insert it so it is a vm cd rathe than a mac cd. Grateful for any advice.
Double check virtual machine configuration. The CD/DVD device should be at the top of the boot order and make sure the CD/DVD device is pointing at the correct DVD drive. Post a screen shot of what you see. Try the CD on a new VM that doesn't include a hard disk to make sure the CD is bootable. Maybe even check if your Mac can boot from the CD.