Are you shutting down all non-essential programs (especially anti-virus) before trying to install the game?
Did you check the CD for scratches, fingerprints or dust?
Do you have a different optical drive you can try?
Did you try the female wizard? That data is on the play disk, so should be ok (or at least you didn't mention a CRC error then). The only difference between genders is the voice and starting skills.
Try the manual install procedure in the
Troubleshooting Tips topic, at least for the wizm.rar file (male wizard info). A couple people had problems installing from the CDs, but could either manually extract directly from the CDs or copy the relevant rar file(s) from the CD to the hard drive and extract the files from there without getting an error.