Just got a brand new iMac 2.4 GHz Core 2 Duo w/ 1 GB of RAM. Installed Boot Camp with Windows XP along with Mac Office (Student Ed). When I installed Parallels, I notice something wrong right away. I've attached some screen shots as a picture is worth a thousand words! Still, I tried working through the 'broken' interface and attempted to install Windows XP, but could only get to step 6 of the Quick Start Guide (pg 5). It says to "Choose Default CD/DVD-ROM from the Devices menu," except that all the devices listed there are unselectable! (They are all grey, none are black.) Do I have a bad install disk? Or is it something else? If I can supply any additional information, please ask. Many thanks in advance!
Try installing the latest Parallels Desktop 2.5 build from here. But firstly please uninstall the application and backup your virtual machine.
It works! The Windows XP installation stalled, so I adjusted the acceleration of the VM to normal. Windows installation resumed, finished, and now I have the program I need running on my Windows VM. In short - it worked! Thanks estrelnikov! Should I now try upgrading it to V4 (since that's version I purchased!)? Or just leave well enough alone? Thanks again!