HELP - Cannot install or copy from software installation CD

I try to install an accounting software demo from CD and get the error in the Event Viewer:
The device, \Device\CdRom0, has a bad block.
I then tried to copy the files and soon got the same error.  I can't find information on whether this is an OS problem (Win 7 Home Premium 64 bit), a hardware problem (Satellite E105-S1802) or a problem with the CD.  I have no other computer to try this on at the moment and really need to install this software.  Any help/guidance would be appreciated.  I already ran the Fix-It on the Microsoft Support website, and it found nothing.  The driver also seems to be current when I tried to update it from the Device Manager.
Thank you!

Thank you, Jerry... Here you go:
Log Name:      System
Source:        cdrom
Date:          6/2/2010 4:41:50 AM
Event ID:      7
Task Category: None
Level:         Error
Keywords:      Classic
User:          N/A
Computer:      Tim-Toshiba
Description:
The device, \Device\CdRom0, has a bad block.
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="cdrom" />
    <EventID Qualifiers="49156">7</EventID>
    <Level>2</Level>
    <Task>0</Task>
    <Keywords>0x80000000000000</Keywords>
    <TimeCreated SystemTime="2010-06-02T11:41:50.943523900Z" />
    <EventRecordID>68035</EventRecordID>
    <Channel>System</Channel>
    <Computer>Tim-Toshiba</Computer>
    <Security />
  </System>
  <EventData>
    <Data>\Device\CdRom0</Data>
    <Binary>030080000100000000000000070004C0000100009C0000C0000000000000000000E85A09000000002A07060000000000FFFFFFFF01000000580000C40203000000200A124802004000800000B4000000000000000000000020C2D80680FAFFFF000000000000000030496A0480FAFFFF00000000000000000000000000000000280000012B5D00001000000000000000F0000300012B5D0A00150000110000000000000000000000</Binary>
  </EventData>
</Event>
Log Name:      SystemSource:        cdromDate:          6/2/2010 4:41:50 AMEvent ID:      7Task Category: NoneLevel:         ErrorKeywords:      ClassicUser:          N/AComputer:      Tim-ToshibaDescription:The device, \Device\CdRom0, has a bad block.Event Xml:

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