Symptoms

You try to install Windows in a Virtual Machine, but installation fails on booting from Floppy drive step. Screen contains information about Disk being formatted with WinImage 4.0 and System disk not found, please see screenshot below:

Cause

Most probably, the image has been incorrectly burned to CD/DVD from ISO image file.

Resolution

Please install shareware version of WinImage on physical PC running Windows and create ISO images from Windows installation disk. Latest version of WinImage can be found here:

http://winimage.com/download.htm

Once ISO image of Windows installation disk is ready, you can transfer it to computer where you want to create virtual machine and start installation of Windows using the newly created ISO image.

Now you can connect the ISO image to the CD/DVD-ROM drive of the virtual machine:

1.    Launch Parallels Desktop.

2.    Click the CD/DVD-ROM icon in the main Configuration window to open the CD/DVD-ROM drive’s settings.

3.    Select the Use image file option and click Browse to locate the ISO image file.

You can use a successfully created image file as a bootable media for the guest OS installation instead of a real CD.