Stuck in a loop

I have four Virtual Machines (three XP, one Windows 2000). I have successfully upgraded two of the XP machines, but am having the same issue on the last XP machines and the Win2K machine... It goes through coping the machine and step 1 of the process. When it gets to step 2, it says it can't go any further and has to do it manually. Not a problem (I thought the first time)... Clicked over to Windows and saw there was a message behind the Upgrade Wizard.

I remembered reading that you should ignore any windows messages, but it was telling me that (one of the messages, this one for 'The software you are installing for this hardware: Realtek RTl8....' hadn't passed the Windows Logo test, so I told it to continue anyway. Several more came up and I did the same thing.

The process continued.

It finally finished and when I went into Windows the first time, everything almost worked, but I kept getting messages that say it is finding new hardware and I am stuck in a loop. Now, remind you, this is on two different VMs with two different OSes. Same issue.

I have tried to convert these several times, always with the same outcome. This last time, I decided not to click continue anyway just to see what happens. The process continues with a bubble that comes up finding new hardware. I thought, cool, it is getting through it this time by itself (after I click on the bubble to tell it to go away), but now the bubbles are repeating. (I've attached a screen shot.)

I thought I had found a solution here http://forum.parallels.com/showthread.php?t=31326&highlight=tools, but it didn't work either as I couldn't select the .hdd file from my old machine.

So, I'm stuck. Luckily, I don't need these two virtual machines right now, so I am hoping there is a solution out there somewhere.

Anyone having the same issue and been able to get around it? I am happy that I was able to get through two of the machines, so I'm not dead in the water, but really would like all the machines working!

Thanks in advance for your help!

\frank

Some additional info:
1. Mac OS Version - 10.5.5
2. Parallels Build #4.0.3522
3. What kind of computer - iMac 2.4 GHz Intel Core2Duo
4. Total Physical RAM - 4GB
5. Hard Drives - 1 300GB
6. If you are using a BootCamp configuration or not - No Bootcamp
7. Did you upgrade from a BETA - No, 3.x
8. With what Build did the problem start - This one
9. If Parallels Tools are installed - Trying