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Try installing from your other CD rom drive higher up the drive letter list.
 
Let's look at what we are dealing with.

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.
 
First, Your video driver is way out of date, but that is not the problem here.

Why do your CD drives have Drive letters so far down the list?
 
I would change them to more reasonable letters, I have heard all kinds of bad things with having them that late in the Alphabet.
 
Did you try both drives at the lower letters, that is try to install from both drivers?