This happened to me, and after doing some reconfigurations, I found the fix.
To fix this, you need to create a new VM again. Leave everything that aren't mentioned here as is to prevent further issues after installing.
On the "install from" section, choose "I will install the operating system later". DO NOT choose the installer disc image option, as this will lead to the same BSOD.
On the guest operating system version, choose Windows XP Professional.
On the I/O controller selection, use BusLogic.
On the virtual disk type selection, choose IDE. DO NOT use SCSI as this also leads to this BSOD after installation.
As I said before, leave everything else on the VM creation wizard, to prevent further issues. After you've finished configuring, mount the ISO into the VM and just do the installation. If you do these correctly, you should be able to boot WinFLP without problems.
Hope this helps, and good luck installing it.
Side note: I've searched the whole forum to see if this has already been posted and I found none of them, which is quite surprising.