Installing windows xp from image with Parallels

Hi,
I've a macbook os 10.4.11 and just bought Parallels Desktop 4.0

I own a license for Windows XP from my previous laptop but I lost the installation cd.
Therefore I downloaded Windows XP SP3 from the web. It is a .iso image file.

I've tried to install Windows using this image and my license key with Parallels but I couldn't get it work.

My question is: is there a way to install Windows XP from the iso image I downloaded? Is that image bootable or not?

Thanks!

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Regardless of whether or not you own a legitimate license, owning one does not give you the right to download illegal copies.

You probably have an OEM license which only works with the computer it was installed on first/purchased on. They are cheaper but have the limitation to be tied to a motherboard. You can get another OEM CD/License from Newegg for under 100 but might as well get Windows 7 a few weeks from now, but yes installing from an .iso should have no problems.