Why is parallels giving me the error "there is no disk in the drive"?
I got this exact same problem. Windows 7 on Parallels installed via ISO DVD running VS 2010 MVC 4. I can't answer why this happens, but just keep clicking 'Continue', it'll load your site eventually. If you look in the Output window you can see it's making progress.

This only appears to happen the first time you start your project.