The movie files should not be too hard to find (large *.bik files on the play CD), however the game does not store the optical drive path in the registry or a configuration file, so you can not get it to look on the hard drive for the movies. Maybe a CD-ROM emulation program? If there is one which works with the copy protection in Divinity, though, setting it up with a non-working copy of the original CD might be a problem.
How scratched is the CD? Is the scratch on the reflective side or the label? Scratches on the top can be much more destructive. There are filler fluids available in computer stores, etc to fill in minor scratches, and repair kits that can grind down the surface slightly and smooth out larger scratches (some music or computer stores can to this, which for a single use would be cheaper).
Council of Seven HELP!!!!! 
