Ok, just got an Imac and downloaded parallels. Here's the deal: I don't have a CD for win xp. What I do have is a win 98 CD, and the upgrade CD for XP Pro. I was hoping I could install 98 and then upgrade and be done with it, but I've run into an issue. I started trying to install 98, but at a certain point, the VM has to "reboot" to continue the install, at which point I get an error message, and everything stops moving. It seems like this is an integral part of the OS installing, so is there a way around it? Am I missing something?