Parallels does not work with Dell Latitued D820

Machine is 2 core duo 64-bit, 2.23 ghz, 2 gig ram running suse 10.1 32-bit.

Installed parallels 2.2 build 2092. Creates disk image fine. Try to install WinXP, it is looking for an .iso image. Takes several trys to select read CDROM (/dev/sr0). Try starting again with cdrom selected as boot device, still cannot find the CDROM with WinXP cd in it.

Try to use image tool. I only let me select harddisk and then only to modify an existing image. So, there is no wayi I can install WinXP if paralles does not see the cdrom.

Any solutions available?