I found a resolution for this - for me it was do to with a corrupt downloaded ISO image. To check this, I recommend the following steps:
1. Re-download the ISO image from Microsoft
2. Burn new image to DVD at SLOWEST speed, to ensure no mistakes are made.
This will rule out any problems with download or burning which is exactly what caused the problem for me.
The fact that you can't copy the files off the DVD to a flash drive re-inforces the theory that some files may be corrupted. Try comparing total file size of all files in DVD to total file size of all files within ISO image - mine were different which meant some files didn't copy correctly out of the ISO image.
Hope this helps!