Installation attempts of the newest Ubuntu Feisty Fawn beta or daily builds fails on parallels. The installer does not detect the CD and asks if you want to install the driver for the CD drive. VMWare fusion 3 installs no problem. Prior versions of ubuntu install with no problem. Obviously something has changed between Ubuntu 6.10 and 7.04 and the newer versions of parallels.
I also found this issue shortly after Feisty beta came out. It is an issue with a CD virtualization change made by Parallels that the current infestation of the linux kernel in Ubuntu does not handle properly. The issue actually appeared in Feisty Herd 5 with the newer kernel versions. Additionally, the issue happens with the latest kernels in the Fedora 7 test releases. If you want to help get this fixed, contribute to my bug report here: https://launchpad.net/bugs/95830 also, see my other thread in the Parallels forum here: http://forums.parallels.com/thread10308.html
I got Fiesty Fawn Server to install on the Mac Book Pro by using Q , the OS X Gui for Qemu. It's slower that Parallels but, gets teh job done until Parallels has a work around. The trick of using Solaris 10 as the guest OS doesn't seem to work for Fiesty Fawn Server.
Workaround to install Ubuntu Feisty Server I've written up a workaround to install Ubuntu 7.04 Feisty Fawn Server on Parallels. This covers installing Feisty Server - a different kettle of fish to installing Feisty Desktop, though both make use of the Solaris CDROM emulation.
Thanks Paul, Your tutorial worked for Feisty Fawn Server on my MacBook Pro. One gotcha for newbies, immediately hit ETC when the grub menu appears up so you can manaully select which kernel GRUB should use to boot up. By default it will still try to use the linux-server kernel. By pushing ESC you can highlight the generic kernel. Later, once in linux you can edit the grub menu config and remove the lines pertainning to the default kernel or tell grub to use a differrent entry as the default kernel to load.