Error 1305 while installing Crystal Reports 2008, JavaSDK

While installing Crystal Reports from the original media on a new Lenovo Thinkpad running Windows XP Pro SP3 I get the following error while installing:
Error 1305: Error reading from File: c:\program files\Business Objects\javasdk\jre\audio\soundbank.gm. Verify that the file exists and that you can access it.
I have the option to retry or cancel, obviously cancel exits the installer. Retry just fails again. I have tried to access the file (which does exist) and I cannot because it is in use. I used Sysinternals process explorer to find out what has the file in use and it is msiexec.exe which is the Microsoft Installer service which is running in order to install CR2008.
I have tried restarting, setting permissions on the file and folder, uninstalling and reinstalling Java VM from Sun. I even tried killing msiexec (which killed the install). I even tried taking out all reference to java in a custom install.
I am at a loss on what to do next. Any help would be appreciated.
-Michael

I found that if I installed it from a copied local directory instead of the CD Rom that it worked

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