Troubles with installation of Windows XP. Please help!!!

Good morning.

I am trying to install windows XP on my Mac which is using Snow Leopard. I have installed Parallels 6.0 with no problem.

When it comes up with the Virtual Machine listing and I click the little start button to choose Windows XP as I am trying to install Windows XP, with the disk in the drive, I notice that the Icon disappears (the one that says there is a CD in the drive). I am using the Trial version of Parallels to make sure it works! The windows XP start screen comes up and the Parallels Desktop screen comes up like it does in windows.

This is where i start to have the issues.

It doesn't seem to be connecting to the CD rom and then a message pops up that says "There is no operating system installed in this virtual machine. Please insert an operating system installation CD into the optical drive of your Mac and restart the virtual machine".

That's about it. It doesn't seem to be finding the disk or something and I have no idea how to fix it or what the problem might be!

Can anyone help!?????

Thanks

Graeme