Here is some further information for anyone else who maybe in the same situation.
The situation is:
I want to install Parallels Desktop 9 and Windows 8.1 on my Mac. I purchased Windows 8.1 via download, therefore I do not have the physical DVD available. When I click the "Download" button an .exe file, which WILL NOT open on a Mac, is downloaded. I copy this file to a flash a drive and transfer it to my work PC, which is an older 32-bit machine. As it turns out, this .exe file is a "setup" app that gathers information about my system. It assumes that I want Windows 8.1 installed on my work PC and begins gathering information about my system.
Once this completes and the "setup" app has done it's thing, I am presented with a "Install Windows 8.1" window, which gives me three options.
1. Install now
2. install by creating media
3. Install later from your desktop
I choose option 2, which then gives the choice of installing on a USB flash drive or creating an ISO file, which is a disk file similar to a .dmg file. I choose the ISO file and save it to my flash drive so I can take it home and load it into Parallels.
The catch is that the "setup" app created a 32-bit ISO file because that is what my work PC is. This 32-bit version did in fact install on Paralles and works fine, but, it's not what I paid for.
My solution: I called Microsoft Store, got a refund and was advised to purchase a physical copy from a local retailer.
My advice: If you opt for the ISO option, which is logical for any Mac that does not have an optical drive, make sure the ISO file is created on a 64-bit PC machine.
