New Macbook , 10.5.6. , Parallels 4.0 = Unable to complete XP guest install

Title says it all .. brand new macbook osx 10.5.6. Fresh install of parallels 4.0. When I start installing win xp (from cdrom drive) it gets all the way towards the end ' finalizing' step, with about 7 minutes left. At this point all cdrom and hard drive activity stops but the windows setup 'looks' like its still running but the timer stays at 7 minutes forever.

I have a imac at home in which i had zero problems with this same procedure.
Any idea's? Im creating an image from my xp media , maybe the cdrom drive and/or media is having a problem.

Thanks -Jeff

 

Create ISO image and check it, pay attention to errors during iso creation, if they are it means CD is corrupted
1. Insert CD/DVD source

2. Start Terminal from Applicatins/Utilities, you can then determine the device that is you CD/DVD drive using the following command:

$ drutil status
Vendor Product Rev
MATSHITA DVD-R UJ-835E GAND

Type: DVD-ROM Name: /dev/disk1
Cur Write: 8x DVD Sessions: 1
Max Write: 8x DVD Tracks: 1
Overwritable: 00:00:00 blocks: 0 / 0.00MB / 0.00MiB
Space Free: 00:00:00 blocks: 0 / 0.00MB / 0.00MiB
Space Used: 364:08:27 blocks: 1638627 / 3.36GB / 3.13GiB
Writability:
Book Type: DVD-ROM

3. Umount the disk with the following command:

$ diskutil unmountDisk /dev/disk1
Disk /dev/disk1 unmounted

4. Create the ISO file with the dd utility (may take some time):

$ dd if=/dev/disk1 of=file.iso bs=2048

5. Test the ISO image by mounting the new file (or open with Finder):

$ hdid file.iso

6. The ISO image can then be burnt to a blank CD/DVD.