BSOD during Windows XP Guest OS installation.

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Symptoms

During Windows XP Guest OS installation from CD you may receive the following error (BSOD):

SESSION3_INITIALIZATION_FAILED

Technical information:

0x0000006F (0xC0000020, 0x00000000, 0x00000000, 0x00000000)

Resolution

Please create ISO image from Windows XP installation CD and try to install Guest OS from this ISO image as described in the Parallels Desktop for Mac User Guide -  https://www.parallels.com/en/download/file/doc/Parallels_Desktop_for_Mac_User_Guide.pdf, pages 73-74, step 11 - specify created ISO image as the source to install WIndows XP from.

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