i had thi sproblem too- its not your CD
first time you boot from CD and install the second partition has no number (part 1, fat partition, part2, etc) so you choose that partition inbetween 1 & 2.. it formats it (must be NTFS- i have had zero success with FAT)... then restart, at this point if you disable cdbooting or remove it the icon WILL flip upside down (in my case) so just let the cd boot again and run the install again.. now your NTFS partition ins partition 2 and you do the process over.. next time restart it with c d disabled and it should be good to go
i hate when people just randomly choose a solution and don't know what they're talking about... ((saying the disc is bad)).. I could see, however, if it lacks SP2 that some issue could arise, but if you google there are ways of downloading SP2 and adding it to the disc in the same fashion you added narf's stuff