operating system not found?

Downloaded fusion 6.02 online and trying to install on Mac OS 10.9.2.  When it asks me to select a CD or image to install nothing shows up.  I try and select the installer manually and then install.  After installing it says an operating system cannot be found and to "Check your Startup Disk in the virtual machine settings. If you have not installed an operating system yet, you can choose an installation disc or disc image in the CD/DVD settings and restart the virtual machine."  Try and select the HD, but it won't allow me to. 

Any advice?

Thanks!