Windows 7 not installing in Parallels 8

AndreVS

Bit poster
I'm installing on a MacAir with no dvd drive, so I made an dmg from the windows dvd and copied it to the mac's desktop. When I try to install, it starts the process, I choose the image, it tries to start Windows but within seconds I receive a message that "No boot device is available"and installation halts.
What???
 
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