The Hard disk not found error can have a few different causes:
Incorrect guest operating system information was selected when the virtual machine was created.
To resolve this, choose the correct Windows operating system in the Choose operating system screen. For more information on installing guest operating systems, see the Guest Operating System Installation Guide.
You are attempting to install Windows on a virtual machine using an OEM installer CD.
Windows XP cannot find the SCSI drivers for the virtual hard drive. To resolve this issue, manually install SCSI drivers for the Windows virtual machine:
Locate the downloaded file in the Finder and extract the files from the archive.
From the Virtual Machine menu in Fusion, click Settings.
Click:
Add Device (in Fusion 4 and above)
+ (in Fusion 3 and earlier)
Click:
Floppy Drive (in Fusion 4 and above)
Add Floppy (in Fusion 3 and earlier)
Navigate to the Downloads folder, select the vmscsi-1.2.0.4.flp file, and click Open.
Click Show All in the top left corner of the Settings pane.
Click Startup Disk.
Click CD/DVD and click Close.
Insert the bootable Windows CD/DVD, or choose an ISO image and start the virtual machine.
Note: To choose an ISO image, click Virtual Machine > CD/DVD > Choose Disc or Disc Image..., then browse to the location of the Windows ISO image and open it.
Press F6 to install third-party drivers. You may need to hold the Fn key to activate the function key row.
Press S to specify the device. The system prompts you for a floppy disk.
Press Enter. The system displays the SCSI controller.
Press Enter to install the SCSI drivers. The Welcome to Setup screen appears.