Well I had tried several things to get it working from flashing my bios, reinstalling my motherboard drivers, swapping out a known good cd drive, attempting to install the demo from safe mode but none of those things worked. Today I decided the hell with it and format.

after I got the bear minium installed and setup (drivers and all) I tried installing one of the games and still got the error.. I tried again after doing all the windows updates and it still failed.

I'm begining to believe that it could be a hardware (mainly motherboard) issue.
I've been planning on buying a new system from the ground up when I get the money but that won't happen till a good month or so.

*EDIT*
One more thing I should add is I am able to install older games such as Kotar 2, Armada 2 with no problem and they run fine too.