Problem installing parallels tools

I have a new MacBook Version 10.5.4 with 2.4 GHz intel core 2 duo processor and 4 GB memory. I just installed Parallels 3.0 and a Windows XP virtual machine. When I try to install Parallels Tools, I get the message: "Parallels Tools require that your Windows is running under Virtual Machine. The installation will be stopped."
I installed Windows using the Windows Express installation so I guess it should already have been installed but it clearly isn't.
Thank you for any help you give me!

 

Please put Virtual Machine pvs file here,
from Documents/Parallels/VM name

 

Hi John,
Thank you for getting back to me so quickly. Actually, I just found that I needed to download the 5608 build update. Now Parallels Tools has installed just fine.
cheers!