Parallels 3.0 wont install win XP help is needed

I was having big problems with my vm...so i uninstalled parallels and XP. I started to reinstall, and I get to the part where it says to put in the XP disk and hit start...I do that, and the screen goes grey and says that I need to hold down the power button. I cannot seem to get past this. I have tried to upgrade parallels, but it just sits there, and never seems to get the update. I could really use the help with this one...it is to the point that I have actally started reading the manual!!! LOL