Windows XP SP3 and Parallels Desktop 5584

The installation seems inconsistent and unstable. It can be for various reasons. Yes, I suggest you start from scratch.

 

What is best way to re-install Windows XP to Boot Camp?
Should I remove the previous partition and re-partition my hard drive?
When I started to re-install using the previous partition I was warned that there was an OS there which might not work properly after this install. I had assumed that re-installing would overwrite whatever was there. I quit the install so I could get more info.

Also I created the integrated XP SP2 with SP3 and have a new "install" disk. Can I use that to install? When I tried it in the above aborted install, the setup asked for an SP2 disk and wouldn't take the SP3 integrated disk.

 

Start fresh, delete the Windows partition and create the partition again.

I have some doubts about your slipstreamed XP SP3 cd being correctly slipstreamed, besides, Apple Boot Camp drivers that come with the OSX Leopard dvd don't support SP3. So, start with your SP2 orignal cd, then install Boot Camp drivers from the OSX dvd. Then install Apple's Boot Camp 2.1 drivers patch and only after that should you upgrade to SP3, for that use Microsoft/Windows Update (Don't run the update until you have installed the Boot Camp patch).