Problem with installation of Windows XP

[mrblog]

I'm having this same exact issue installing XP from SP2 CD (full CD, not upgrade). When it gets to the "Windows Setup" message it displays a txt error (blue screen) for a moment and then the VM stops, exact;y as described above. This is a brand new machine without a bunch of software instaled, just virgin OS X 10.5.3 with latest updates.

 

[mrblog]

In the hopes that it helps someone else, the solution for me was to make a copty of the Microsoft CD, saved to an ISO file and have Parallels install from that instead of the official Microsoft XP CD. Details: http://forum.parallels.com/showpost.php?p=107463&postcount=6