Erm, I have XP and OP2(legal version), and it hasn't given me a single error, not at v1.0, nor at v1.3.1.
Your problem is situated in Windows, it cannot start the auto-execute of your installation program, maybe just go to the cd drive -> Right Click, Explore -> and run the setup/install manually, instead of having your PC doing it.
As when you put in a cd in a drive, your OS will most of the time start reading it and trying to figure out what it needs to do, that's the AutoExec.
HTH