It says a network error...is E:\ a network drive?
If not it seems to be a problem with reading the file, I'd try making an image of the disc on my hard drive. If that's not it (and it's also not some known issue that you googled for), I'd try to get my hands on another source, and if that other source works then burn it for future use.
It says network error, and you're running Vista. I've had trouble with network interrupts in Vista often when installing things over a network. My laptop doesn't have an optical drive so network installs are mandatory. Sometimes with big games not everything gets copied right (like Mechwarrior. ) and you'll get errors. Try making an ISO (like Ecstazy said) with this:
I recommend this tool for burning and image creation. Then use winimage or Nero or Daemon Tools Lite. http://www.daemon-tools.cc/eng/home (This is what I use, top notch) to mount it as a virtual drive and try installing from there.
Have you made sure you have the latest updates and windows installer version? Otherwise I don't know what else to suggest other than deleting temporary files manually. Did you install a demo of it previously?