Maybe the DVD is scratched? Maybe try wiping it. It could have a smudge or something? Maybe try copying the DVD to the HD and redirect the installer to copy files from there. Windows seems to try harder than installers to read and copy a file. If all else fails just download a copy from Bit Torrent or Usenet or where ever. Since you own the disc its not piracy. You could still use the original disc for game play and just use the downloaded copy for installing. Well, that's all I got. Good luck.
Oh, one more. Maybe an anti-virus program is interfering with the install. Or UAC?