Re: Operating System Not Found VMWare Fusion

First of all it is the .vmx file not the .vmxf file that you should look at if/when needed and secondly I have no idea what you mean by "I have a USB where i copied the Windows XP Professional file over and burned an .iso of the same" since I have no way of knowing what "Windows XP Professional file" you copied and you don't burn an ISO Image, you burn a CD/DVD! Image may be NSFW.
Clik here to view.  The bottom line is you need to either take the actual Windows Install CD/DVD and create an ISO Image of it on a system that has a CD/DVD or if applicable download an ISO Image from Microsoft.  Either way you assign the ISO Image to the CD/DVD in the Virtual Machine's Settings.  Otherwise to use physical Optical Media on your new iMac you'll need to attach an external USB CD/DVD Drive.