Did you try re-installing from your own CDs/DVD? If so, there may have been a scratch, dust or fingerprint that caused a problem reading/extracting some file. A different optical drive, if available, may be better able to read the disk.
Alternately, you can delete all of the files in the '..\Divine Divinity\Run\Dynamic' folder, and the DirectX install folder, and then just zip the full Divine Divinity folder (other than the saved games; you can move them to another location temporarily). If you burn the resulting file (1.72GB zipped with 7-Zip) to a DVD, you can re-install in the future just by unzipping the file to the desired location (I did this years ago just to test a new DVD burner, and it has come in handy to re-install the game).