Windows XP Installation hangs on "Installing Devices

Sometime when installing Windows XP, at the Installing Devices step, the setup eternally stays at 30-something minutes remaining. It's not frozen though (the text on the right hand side changes periodically). This has happened on Parallels 3.0, on a new (Less than 2 weeks old) MacBook. I tried the following, to no avail: - Tried using both a .dmg and a .iso instead of the actual disc. When I do this, though, it doesn't find the disc. A dialog pops up and tells me to insert the Windows XP Home Edition CD-ROM. - Tried copying the files to another CD. When I do this, the same problem as above occurs. It doesn't find the disc. - Tried running it in fullscreen mode. Resolved: http://kb.parallels.com/en/4975 Even though the title of that refers to XP with SP0, it's also a problem with SP1.