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Parallels 2.1 for some strange reason will not read DVD's atleast thats what i read on thier forums. So unless someone knows away to break a OSX install disc into muliple CD's you wont be able to even try it. I installed OSX on VMWare 5.5 without any problems at all, I'm pretty sure the key is to create a FreeBSD Machine and to make the Virtual Hard Drive A fixed size and not a growing drive. Hope this helps.