1. Un-install SQL Server, delete the related folders and delete the
corresponding registry keys:
HKEY_LOCAL_MACHINE\Software\Microsoft\MSSQLServer
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\MSSQLServer
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Services\SQLServerAgent
HKLM\Software\Microsoft\Windows\CurrentVersion\Setup\ExceptionComponents
2. Restart this machine.
3. Copy the installation files down from the CD to the disk and run setup from there.
If you still get the error, this problem is probably caused by the fault CD media. You can use it to install SQL Server on another machine, can you make it? Or, please contact the Vendor to replace a different set of CDs.