Ok, i think i fixed it. I restored CD/DVD ROM to default and everything seems fine. I've installed office and all other software i need. Yet volume still reads 8GB, oh well.
First impressions i think im loving this thing. Might actually splurge for a full license and get rid of Bootcamp. One little problem though, i'd like to be able to drag files and folders from OS X into the Parallels partition but i dunno how. Hmmmm....
EDIT: Figured it out, thanx alot.