Kotor installation problems

[Magniitude]

Im trying to install KOTOR 1 for PC on my computer. I have 2 drives (1 DVD-R drive and 1 CD-RW). While trying to install the game on the DVD-R drive i get a component transfer error around 30 percent, which is very common according to the official forums. Theysimply suggest that you return the game to the store and get a new copy. Thing is, i bought this game about a year or 2 ago and it ran fine, no installation problems. Now its the same computer, just reformatted, and i cant install it. I know its not the discs problem because i installed it on my laptop fine. When i try installing it on my CD-RW drive, i get this error message when the setup is loading:

Any clues? I want to install it on my computer now because it runs a lot better than the laptop does.