Sounds like your dvd drive is the culprite here, I've had the same issue. The drive seems to work fine, but the sustained read of the cab file(cab2) being 3.4gb, the drive just can't go for a sequential read that long. I can't even copy the contents over from the dvd to my computer because of it being unable to maintain a sustained read for an extended period.

I would try imaging it on another computer, creating an iso, then using something like clone drive to mount and install from the image,a nd see if that doesn't work.