Host - WInXP home, 1.5gigs of ram dual core pent d 805 (2.6ghz) Guest- Win2k pro upgrade version , set to 512 M of ram, 20 gig HDD All goes well at first, parallels boots off the cd fine have no problems swaping out the cd to my old win95 to verify upgrade. After the initial text mode instalation and the first reboot into the grafical part of the install it gets to the installing devices part and goes into what I would call a soft lockup about 1/8th the way thrue the progress bar. I am able to move the mouse and window inside the VM around but no progress on the install. I have tried disableing acceleration but it still locks up at the same spot, and have even tried making a sliptreamed win2k sp4 cd from my vanlia cd but it still locks up in the same spot
Try copying your Win95 CD to your hard drive, and direct the installation to it instead of the CD. If disk space is a problem you can eliminate any subdirectories that seem like addons or fluf - just get the cabs. I have no real reason for suggesting this for your particular problem, but this approach has worked well for me in similar situations.
Well I solved my own problem, turns out that releasing the mouse (ctrl-alt) to do other things while it was installing was the problem. When I baby-sit the install (i,e, didn't release mouse or do anything else with the computer) WIn2k finaly installed fine. Don't know if this is a new bug or what. ( build 2112)