Parallels cannot recognize my dvd

Charlesmac

Bit poster
I am trying to install parallels 7 on my MacBook air. It keeps telling me that there is not a DVD drive.. However my DVD drive is connect via the USB port.
 
I have already installed parallels. It happens when I try to install Windows after I run parallels. If I pick install from DVD ( windows 7), it tells me there is no DVD installed. parallels for some reason cannot see my USB DVD drive. It's a MacBook Air.
 
My no-name USB DVD drive worked fine on my Windows 7 installation with my MBA. I used the drive to install Parallels 7 and right after that installation, a window popped up offering me a option to install Windows 7 which I did from the same DVD drive.
 
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