Transporter Created VM Won't allow me to login

I'm running the demo of Parallels Desktop 6 on my macbook with 8 Gig of RAM. I installed the Transporter app on my Windows 7 32 bit laptop.

First of all I tried the external hard drive method. I imported the image on my mac using the Parallels Desktop software import function which opened the Transporter app. I choose the destination and let it chug away at moving 190 GB Windows. When it was done I started up the VM and it went through the configuration steps and stopped at the windows "press ctrl alt del to login" screen. The VM would not accept any input. I decide it was busy and just left my laptop for the night.

The next morning, still no activity. I could not get the mouse or keyboard to register. Eventually I did a force close on it and rebooted it. I don't remember the exact steps here, but eventually I had it trying to sleep and it was telling me it was converting it to a new format. I let this go all day and all night. No change whatsoever.

I then repeated the exact process to no avail. We're talking days here.

Yesterday I connected the two laptops via a direct Ethernet connection and ran the Transporter again. It took 5.5 hours to complete the process and finished right as I was running out the door. This morning I opened the VM and it went through the initial configuration, got to the login screen, and no mouse of keyboard activity.

I then tried assigning my laptop's keyboard and trackpad to the VM. No activity. I tried assigning the external keyboard to the VM. No activity.

Does anyone know what I'm doing wrong here? Any suggestions? If this doesn't work, I don't want to buy the product. If it does work, I'm going to be thrilled.

Thanks!