Can't get Parallels to hook into Bootcamp

First a few specs:

Macbook Pro 2.4GHZ Penryn (early 08', latest model) with 10.5.4
Windows XP SP2
Parallels 5608

I searched on this forum and wasn't able to find any solution to what I'm experiencing.

List of steps for what I'm doing:
Going into Utilities/Bootcamp Assistant, partitioning 20GBs for Windows. Restart, boot from CD
I re-format (not convert or use it as-is) to FAT (full format, not quick)
Install finishes fine, I install all the drivers from the OSX DVD.
I reboot into OSX and open Parallels, then select Bootcamp.
It tells me it's going to be installing the drivers and whatnot and not to do anything for a few minutes, etc.

After that, it just hangs. The mouse doesn't work, either the built-in or the external. Keyboard doesn't work, ctrl+alt+delete does nothing. Rebooting into Bootcamp native ends up with the same thing, frozen mouse and all. This has happened three times now and every time I have to reinstall Windows to try again.

Any help is much appreciated. Thanks!

 

Start Parallels Desktop - Configuration Editor -Hard Disk 1- Advanced -Clear