After getting about 90-99% thru disk 2, the installation fails and it gives me a component transfer failure and it stops installing. Now, I read the other post where someone had a problem with disk 2, and merely copied the contents to their hard drive. Unfortunately, I cannot even copy as it stops at 97% when copying datacab3 from the disk. Am I dealing with a faulty disc? I tried it on two disc drives and no can do. I tried copying it, burning it to an image, but nothing works. It always fails.

It does sound like a bad disc. Try getting a direct exchange from your retailer, explain to them exactly what the problem is.

Yeah, it was a bad disk. I got a new one and it so far has installed (on the fourth disk now). I didn't realize it, but there was a deep gouge on the outer rim of the disk that must have been the problem.