Installation fails on Application Install DVD included with Macbook Pro

Not sure if this is the appropriate forum... please move/advise if there is a better one.
I'm restoring my Macbook Pro to the factory default settings using the supplied DVDs and the installation instructions provided on the OS X Install DVD.
The Application Install DVD fails about 2/3 of the way through the installation process. The error simply says Installation Failed in big, bold mocking letters.
I'm assuming the DVD is damaged... I don't know what else it could be considering it's a clean install and I have no problems installing the OS.
Apple is sending a new DVD, but my real question is this:
Is the DVD that comes with the Macbook Pro more or less the same as purchasing iLife? In other words, can I continue configuring my system, installing other applications, moving over backed up media, etc., and then install the Applications DVD when it arrives - or - is it best to install both the OS and Applications DVD on a clean system?

OK--and my bad for not answering the question you actually asked.
I checked my original system discs for my MBP, and did not find a separate iLife disc. So I would assume that the iLife applications would be on the disc that won't install, although I cannot be 100% certain of your situation since I am not sure exactly what Mac you have and how the software was originally shipped. I know my iBook had a separate iLife disc. The MBP system discs seem to be dual layer DVD's, so they would hold much more than the CD's that originally came with my iBook.
I think you would want to have the application installed and updated before transferring any files that depend on that application. For example, if you have a lot of photos, you would want to have iPhoto or some other photo application installed before moving your photography files. You can check in Finder to see what you have, and you can directly download some applications like iTunes. So you can probably transfer the files that you have the application for, and wait on any that will have to be installed from your DVD that is coming.
Hope this helps! Good luck!

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