Sounds like an issue with the CD. There's a setup file that contains the
database of all the files and settings to install, installer file (*.msi),
and it's looking for the files on the CD, they should be there, but are not
and hence you get the error. First thing I'd do is clean the CD. If you're
not exacly sure how, try these suggestions from a knowledge base article
(http://support.microsoft.com/kb/315996):

Clean the CD
Use a CD-ROM cleaning kit, or gently wipe the silver side of the CD-ROM
with a soft, lint-free cotton cloth. Do not use paper. Paper can scratch
the plastic and leave streaks. When you clean the CD-ROM, wipe from the
center of the disc outward. Do not use a circular motion.

*If the disc still does not perform correctly, clean the disc by using warm
water or a CD-ROM cleaning kit. Dry the disc thoroughly and then test the
disc again.

Examine the CD
Examine the CD for visible deformation or scratches. If the disc is
damaged, contact Microsoft Sales at (800) 360-7561 to obtain a replacement
CD.


Best Regards,

Aaron Rykhus, Visio Support
Microsoft Corporation
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