Its probably the CD in that case. Is there any way you can send it back or get another one to copy windows and then use the info from that disc?
It could also be the RAM. If you have two sticks of RAM in the computer, try taking one out, and leaving one in. Try installing again.
If this then fails, take that stick out and put the other in, adn then try again.
Your bound to find one stick that will work. If you only have one stick though, you might have to find a replacement if that cd changing idea doesn't work...as it would be one or the other. It does seem more the CD's fault though having problems reading certain parts of the disc
Though it could be the RAM also, because this is where the programs are stored after taking them off the disc to copy.
I hope this helps