Hangs on Blue Screen when creating XP vm from disk

Hi,

I am trying to create vm with XP Home edition from a disk on my mac machine. It starts the process, loads all the libraries and then goes into Windows Setup where it hangs forever. How to troubleshoot the issue? Is there logs available to see? Should i create ISO image from the disk first and then boot from ISO, would that make any difference? Any help is much appreciated

Thank you

p.s.

• VMware Fusion 5, (for Mac OS X) ESD