After fighting with this last night and part of this morning the removal of the c:\program files (x86)\common files\installshield folder worked. Thank you for posting that information. Now to see if I still have audio after the install. Thanks again.

Sadly, this error is as old as Windows 2000, and occurs with every program that uses InstallShield to install. There are quite a number of things that can cause this. A previously failed or badly removed InstallShield install, a registry error, etcetera.
Alright, what you might want to do is run a registry cleaner. Something like CCleaner. It will fix all of your registry errors. (always a good thing)

Also, empty out (leave the folder itself)
C:\windows\Temp
Documents and Settings\+your username+\Local Settings\Temp

If none of that works, you're going to have to bypass the Installshield wizard completely.

Now,
one way to do this is to install the game on another computer and copy
the installed folder into you pc, therefore bypassing the install
completely. There's a file in the installed files that lets you re-enter the serial.

Another way would be to extract the actual install
from the game's install. This is a tricky method and only works about 5%
of the time, because not all programs are installers packing inside the
InstallShield wizard. I'll look into this later, since it's now 0330 (3.30am) here and i'll need to get some sleep at some point

You've got yourself a classic Installshield error. It's got nothing to do with the disc, but infact originates from one or more corrupt files in your Installshield folder.

Delete (or if you dont feel secure about doing so, rename) the InstallShield folder in C:/Program Files/Common Files/. It's hidden, so if you don't already have so, enable hidden folders to be show. If you can't find it, it is possibly located in C/program files(x86)/common files.