I encountered this problem today trying to install the game on my son's box, and have had the same problem with another game directly out of the package before. While checking the CD for scratches/cleaning it is not a bad idea, its not always the only solution/answer to the problem. Nor is copying the file in question, as I could not do that either on his machine. It still gave the cyclic redundancy error on the copy attempt. My belief, since I've encountered this before and both times had to use a different CDR/CDR-RW drive to install/copy is that some drives just have trouble reading the data off some production disks.
Workarounds I've found:
1) The first time it happened I bought a new CDR-RW drive, only after exchanging the game disk once as it was sugegsted it may be bad. The new CD threw the same error, which indicated it wasn't the CD. SO I bought a new CD drive and had no problem what-so-ever installing.
Not the best or most cost efficient method, but it worked. I did this because I was able to install the game giving the cyclic redundancy error on another computer with no problems at all. Could have swapped CD drives, but I needed an excuse to by myself a new one anyway
2) While encountering this problem today with JKA on my son's machine (in my case it was assets2.pk3 on disk 2), I tried an install on my machine to make sure the disk wasn't bad, which worked. I then copied all the files from the disk to a folder on my sons machine (which will only work if you've got a LAN connection and enough hard disk space on the target machine) and when prompted for disk 2 used the browse button on that screento select that GameData directory I copied the files to instead of the default which is the CD drive being used to install. The reason I say it requires a LAN connection is that (and what causes me to believe its a compatability issue between some production stamped CDs and CD drives) is that I could not copy the one file throwing the error off the CD on my son's computer to his hard drive. I still got the cyclic redundancy error when trying to copy the file from his CD drive. It copied no problem from my CD drive to his hard drive over the network though.
3) I uninstalled the game from his box and tested something out, since my machine has a CDR/CDR-RW and a DVD/CDR/CDRW capable drive. I created a copy of disk two using the CD drives in my machine and then used the copied disk to install the game on his using his CDR-RW drive. No cyclic redundancy error, game installed fine. Note that in no way am I advocating software piracy. Just stating that you can, if you've got a access to a CDR drive capable of reading the file in question, make a copy of the disk that its on and also get around the cyclic redundancy error.
Hope this info helps someone who encounters this issue in the future.