Parallels/Ubuntu set up help?

I have installed Parallels Workstation, and I have the ISO file of the most recent ubuntu distro. Every time I try and set up a virtual OS I get the Ubuntu start up and then some red lines and an error message (Ill post a screenshot). I am waiting for the actual disks to come in the mail, but I thought I would try and do it this way while I wait. If Somone with experience could tell me what I am doing wrong, or if there is a problem, I’d be very happy.

I am running Windows XP SP2 With 512mb RAM (I know, horrible) and 40Gb spare memory.