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Sounds like an install shield issue.
If you have more than one drive that can read a CD then try that.
 
Also,
Turn off everything in the background like E-mail/ICQ/Messenger, Virus protection and everything in the system tray beside the clock.

If you cannot get it to go then,
Please run a DirectX Diagnostic:
Start menu –Run - then type Dxdiag, then select each tab across the top of the window, and run the tests on each tab. Then select “Save All Information” button in the lower right of the window. This will bring up a dialog box to allow you to select a name for the file where the information will be saved. You can save it right on the desktop as this will make it easy to find. Then copy the contents of that file from the start to the heading that says “DirectX components” then paste what you have copied into a post in this thread.
 
Okay first thing is to update all your drivers they are out of date.

1) Update operating system.
2) Make sure when doing that you get Dx9.0b or higher as required to run the game anyway.
3) make sure you have Admin rights on the account you are trying to install the game with.
4) Update Video driver
5) Update sound driver.
6) See if there is an update for your CD driver

Looks like you have taken info out of the file you posted here so I cannot answer the rest for you.
 
Some of the info you decided to take out of the file you sent was on the Drives so I cannot help you there.

Maybe rerun the Dxdiag and the tests now that you have updated your drivers and post the new file.