At this point, move down to the IDE Controller 1 | DVD Drive section and choose how you want to install the operating system and applications on your virtual machine. You can use ISO images files or the physical CD/DVD drive. As shown, I've selected the Physical CD/DVD drive option and indicated the appropriate drive letter. This will make it easy to install Windows XP from the optical disc. Click Apply to save your changes.
Credit: Images by Greg Shultz for TechRepublic