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do you actually have an adapter installed in windows ? (in control panel > network connections )
i wouldnt worry.. sound under vista in parallels is choppy at best....
did you use a dell recovery disk to install Windows from ?
this is OSX suffering a kernel panic. you might find some more information that would be helpful, in /var/log/crashdump.log
does it hang at the same point ? Have you tried creating an image file of the cd and using that rather than the real cd..?
because this is being done by an SMB stack thats written into Parallels, rather than directly to the device. however, this is not true when...
you cant have both OS's accessing the same file system, so when windows runs in the VM, access to it is removed from osx.