Can't install Lion (Windows XP and Parallells 6 being used)

Hi,
This is my first post here, so please forgive me if I'm not too used to the forum habits. I've been checking the discussions before, but haven't been able to find anything that matched my case...
Let me explain it to you, so that hopefully somebody knows the solution and can share it with me...
I had Mac OS X (10.6) installed in my MacBookPro.
I had also installed Windows XP with Bootcamp in a different partition.
I had also installed Paralllels Desktop 6.
Everything worked fine.
Yesterday I decided to upgrade to Lion, and bought it in the Apple Store.
Before going ahead with the process, and as indicated by Apple, I upgraded the current Mac OS to the latest version.
I tried to install it, and after rebooting, when it was about 30 minutes to finish the installation, I got amessage saying that "MAc OS X can't be installed in the  Macintosh HD hard drive, because a recovery disk can not be created" (translated from the Spanish message)
Then, I though that maybe it was some issue with Parallels Desktop. I checked their Fourms, and indeed it seemed that it could be the reason. I upgraded to the last available version.
I tried again, and got the same message.
Then I thought that maybe I had to upgrade to the last version also with Parallels in the Windows machine. I did so, and I tried again... and again it didn't work.
I don't know what else I can do... besides deleting the Windows partition, installing Lion, and creating a new partition, in which I should install Windows 7 (as Windows XP, as it is explained, is not supported in a new partition)
I followed all the natural steps to create the partition for Windows, install Parallels, etc. I mean that I didn't do anything manually then...
The only "weird" thing that I had to do when installing Windows XP was this one:
The Windows XP that I had was Service Pack 1, and Service Pack 2 was included in another CD... Of course that's not a problem when installing Windows in a PC, but gave me a lot of troubles to install it in the Mac. I found this solution in a Forum in Internet, follow the steps, and it worked:
(http://www.mac-forums.com/forums/running-windows-anything-else-your-mac/38166-wi ndows-xp-service-pack-2-installation-problem.html)
1. Click Start - Run - Type “regedit” and press enter 2. Navigate to [HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\Curr entVersion\Setup] HKEY_LOCAL_MACHINE
\Software
\Microsoft
\Windows
\CurrentVersion
\Setup 3. In the right pane, Right-click and select New - String value 4. Name it as “BootDir” and set its value to “C”
Can this be the reason why I'm not able to install Lion now?
Anyway, and whether it is, any solution (simple, if possible, please! ;-> ) to install it?
(Buying Windows 7, deleting the partition, etc. seems very nightmarish to me)
Thanks a lot in advance!
submariner321

I actually confess not reading but did you read this:
KB Parallels: Virtual machine stops working after upgrading to Mac OS X Lion

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