Parallels CD is mounted to host or VM, but directory that contains Parallels Transporter installer might not be shown or files and directories names are trimmed. The issue is reproduced on GNU/Linuxes distributions (e.g. RHEL 5.4).
Solution is to remount Parallels CD with Rock Ridge extension disabled, as follows:
- Unmount Parallels CD.
Mount disk again with norock option.
mount -o norock /dev/cdrom /mnt/