I did a search, and the only other person who had this issue never had it resolved. I am trying to install Windows XP Pro sp2 upgrade on Parallels using the latest RC version. After it asks me to put in my older version of Windows, it asks me to format the disk. It then jumps from 0-100 and says "Setup was unable to format the partition. The disk may be damaged." I have tried repairing permissions. Also, my disk is not encrypted. Any ideas?