This error amounts to there being a problem with how the cd is mounting with Windows. The reasons why can be multiple and varied. SOME examples of problems causing this:
1) A dirty/smudged CD. Be sure to inspect the disc and make sure it has no scratches, dirt or fingerprints and clean accordingly.
2) A faulty or bad CD. Only thing here is to return to your retailer for another copy or RMA to the maker.
3) Bad, dirty or misaligned lens on the cd/dvd drive. Cleaners or new drive may be in order.
4) Old firmware/unsupported cd/dvd drive for Windows. Some older Matsu****a's and Sony cdr drives require firmware updates. You should hit the website of your cd/dvd drive and see if there are any firmware or driver updates available for it.
5) A 3rd party program is altering your cd/dvd rom operation. Things such as a Starforce protected game, Alcohol 120%, older Easy CD Creator or Nero installations, etc.etc. Uninstall or update any related software.
6) You have a beta or older version already installed. Make sure you do not have an older or beta copy of the game in question installed, and if so, uninstall prior & reboot.
7) A shortcut or file on the desktop, other drive or alternate location of the same name that is corrupt (look for a "setup.exe" on your desktop, on the root/top-level directory of any/all your drives, in Windows\Temp or Documents and Settings, currently logged in username, Local Settings, Temp.. or run the Disk Cleanup wizard + reboot if running Windows XP, etc.etc.).
There are many, many more things that can cause your symptoms, but usually it's one (or more) of the above. Good luck!