Non-system disk or disk error

EDIT: Please ignore, The disk isn't SP2. Sorry for the post.


I've just done a clean install to Leopard, and installed Parallels build 5160 Desktop for Mac.

I have a fresh Windows XP ISO that I made from a CD, as well as the CD. If I try to start an install of XP Pro SP2, I get a:

"Non system disk or disk error, Replace and press any key to continue"

Sort of like the CD isn't bootable - this happens both when I attempt to install from an ISO or a CD.

Any ideas?

System:
MacBook Pro 2.0ghz Intel Core Duo
2 GB RAM
200GB internal hard drive
Mac OS X 10.5
Parallels build 5160

 

I spent many hours with this problem too and finally found this post from smelvis on this board:

1) Found Knowledge base article http://kb.parallels.com/entry/30/458/

2) Before, I tried installing from Disk Image using "Express" install. Article suggested using "Typical" install. That seemed to do the trick. XP is now up and (mostly) running.