As OEM versions are not meant for upgrade use or even in a VM, all what you note is fine and dandy. Also the OEM versions can be customised to do that.
-> Try the retail version please.
Luckily I did this in a VM so nothing was lost. However this does worry me, because I want to set up a dual-boot with boot camp (For OS X) and I really do not want it to go and format drives without my permission. Does XP home OEM do this? Or does it do this if it only sees one partition?
This is roughly what happened.
"Press any Key to boot from CD" screen
"Windows Setup is loading (Press any key to load a third party driver etc etc)"
NO "Welcome to setup" screen
NO "Partitioning" screen
"Setup is Formatting" screen
"Setup is copying files" screen
"Out of the box experience" screen
And windows was installed, basically without my permission (except the fact that I put the disc in the drive, but what happens If I only wanted to partition the drive or boot into the recovery console?)
I also already had windows installed on that VM.
Should I buy a full version of windows or stick with the OEM version that I cannot get refunded and the apple store "said" was legit.
PS I did this in paralells and I know the setup routines that paralells uses are slightly different... Now the only question is... id paralells initiate the format or did Windows XP?