actually, i've never heard of this problem.
have you tried installing the game on another machine (reguardless as to whether or not it will actually run on that machine)?
if you get the same error message, the source probably lies within the disk itself, which means you'll need a new one. just return it to the store and get a replacement.
if it does install, then you might want to consider checking your registry for problems (which is quite difficult, even for advanced users). for more info, pcworld just release an article that you might want to check out here
hope that helps.
See the struggle of the faithless lot as they negate their time
How low to sink to the depths of their frame of mind