Windows XP Disc "not recognized"

When I am trying to install Windows XP during Parallels installation, I receive the following message when I put my Windows XP Home Edition in the drive.

"Setup could not read the CD you inserted or the CD is not a valid Windows CD."

The Windows XP disc is a properly licensed disc.

I would appreciate your help.

 

Hello,

please try to use this article.

Best regards,
Stacey

 

didn't work

having the same "can not read cd" error message and made a dmg image of the xp disc per instructions, and same message keeps coming up. please help

 

and now it just says "boot from the hard drive"