How do I install WIndows 7 from a download for use with Parallels?

I had installed Parallels and Windows 7 to my Macbook when I first purchased it.  Had some issues and uninstalled both.  Now I'm trying to reinstall and I can seem to get Windows installed.  HELP!

Haven't used Parallels, but have VMWare and VirtualBox on the Mac and must be similar. First off, by "download", it must be in an .iso format file, that represents the contents of a physical disk.
After creating the new virtual machine, configuring all the settings as needed for Win7, go to the virtual CD/DVD drive configuration. There should be means for attaching the .iso file to the device: Fusion calls it "Use disk image" and presents a drop down menu for selecting the .iso file. Then confirm that the startup order and/or startup device prioritizes the CD/DVD device. Once that is done, just go ahead and start the virtual machine up and it will boot from the .iso image. You can then use the standard Windows installer to set up your new Win7 instance.

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