It looks like your cd is damaged...seems like you should try to replace it from the shop where you bought it...
<{POST_SNAPBACK}>
I have had this happen to me numerous times, it only seems to happen on games protected by securom. How damaged the disc is doesnt seem to affect it.
My halo disc for example is protected by securom, is in flawless condition but for some reason 50% of the time the install fails with a cyclic redundancy check. And (I believe) KOTOR2 is also a securom game.