If the installer can't read a .cab file directly from the CD, try copying the entire CD to you hard drive in it's own directory and run the install from there. If you don't get the error, you might want to look into replacing your CD drive.
If you still get the error, contact NI Support and see what they say.
Ed

Ed Dickens - Certified LabVIEW Architect
Lockheed Martin Space
Using the Abort button to stop your VI is like using a tree to stop your car. It works, but there may be consequences.