have ya tried cleaning the cd disc drive? checked for bad ribbon cable? switched the cable out , ya never know.......
also, I have found sometimes is better to slow the drive down to say 8x speed vs high rate of speed 24x, 52x, etc.... when trying to load software/files/programs from disc...to prevent errors......
that being said, are you using generic winblows CD drive drivers, or are you using the correct manufacturer driver for your CDRom drive?
doh.read the MS support link posted this thread..theres a valid answer possibly :-/