New Parallels User needs info

Just purchased a new iMac and I now would like to buy Parallels so I can also run Windows XP on the same machine.

I downloaded the Parallels User Guide so I could start to learn something about the program. As I understand the documentation, it appears that I want to install a "New Windows Installation" as opposed to "Migrate Windows from PC". I want to switch between the two OS's, not re-boot.

Moving on to Chapter 6 in the docs, "Creating a New Vertial Machine", it's telling me I can install from a DVD, image, or Boot Camp partition.

Now to my question - I have a disk image of my entire XP system created by Acronis True Image Home (2010), will this work? If not, must I do a complete CD install of XP and then re-install all my applications, I certainly hope not!

Greatly appreciate any and all comments