Trouble with USB key on Parallels running XP

I just bought a program called Bar Ilan Responsa Project. I have a fairly new MacBook Pro and the program only runs on windows. I currently have a 2 week trial version of Parallels running Windows XP Professional.

On a normal windows computer, all you'd have to do is plug in the usb key, install the software and then you'd be able to run the program whenever the usb key is plugged in.

My XP sees the USB key but it won't install the program. When I click on the install file, I get a message saying setup.exe is not a valid WIN32 application.

Seeing that install wasn't working, I installed the program on another computer and moved it over to my computer and put it in program files. Still though when I have the USB key inserted and double click on the application it says please insert the original usb disc and try again! When I go to My Computer I can see that the computer does recognize that the USB is connected.

Does anyone have any idea how I can get it working?

I think that if I can get the USB to show up on my computer as a "Devices with Removable Storage" rather than a "Network drive" it might work. Could I do this if I set up Boot Camp or are Boot Camp and Parallels completely unrelated.

Thanks

Virtualization software does not do a very good job of picking up on "Dongles" and that is probably why it refuses to run in Parallels. You're going to need to install Windows XP using Boot Camp and let it run natively. Then your Dongle should work.

There may be a work around for recognizing the Dongle in Parallels or Fusion but I'm not aware of it. The problem is even though the Dongle is "seen" it doesn't decrypt. And if it won't decrypt, it won't allow the program to run.

I would give tech support a call and ask anyway. They may know of a work around.

Regards.

Thank you