I have tried to upgrade from xp sp2 to sp3 by booting directly to the xp volume and then by going through parallels. On the windows side I get an error that says, "the error occurred while copying file osloader.nt_" From that point on there is no going further. On the parallels side I get a message that says I need my hard-drive to be an additional 4 megabytes larger. There is already 12 gig open so this seems to be erroneous. Now I am stuck. I have had this symptom since the fresh install of XP and my parallels is up to date. Any ideas?
In XP, how much space is free on the disk containing Windows (probably your C: drive)? How much space is free on your Mac partitions?
Your C drive has 21 gigs free. Which drive has 12 gigs free? What is your hard disk configuration in Parallels? I googled osloader.nt_, then osloader.ntd which gave: http://forums.macrumors.com/showthread.php?t=822444 which points to: http://support.apple.com/kb/HT3841 Try those suggestions.