Blue Screen Error as XP Home launches for the first time

Model Name: Mac mini
Model Identifier: Macmini1,1
Processor Name: Intel Core Duo
Processor Speed: 1.66 GHz
Number Of Processors: 1
Total Number Of Cores: 2
L2 Cache: 2 MB
Memory: 2 GB
Bus Speed: 667 MHz
Boot ROM Version: MM11.0055.B08
SMC Version (system): 1.3f4
Serial Number (system): VM6150E2U36
Hardware UUID: 00000000-0000-1000-8000-0016CBA26FD2

I have just installed Parallels 6 on the above Macmini, I have tried to install Windows XP Home SP2 several times and at the point XP launches for the first time I get a blue screen error "DRIVER_IRQL_NOT_LESS_OR_EQUAL"

I have spoken on-line to Parallels and they suggested some changes, none which have been effective, I would be grateful if anyone could advise as I am new to the Mac and I have never used Parallels before, I have added below their recommended changes.

1. Assigning the VM RAM in Configure/General within the recommended range – 1500 MB to 2000 MB.
2. Change the processor to 1.
3. Go to Options/ Optimization => Enable Adaptive Hypervisor, Tune Windows for Speed, Optimize performance for Faster Virtual Machine.
4. Go to Sharing => Disable Smart Mount.
5. Go to Hardware => Video => Assign Video RAM within 256 MB.

Best regards

Simon