Error 1603 usually occurs when msiexec does not have the correct access rights to a particular folder or file. On XP Pro I eventually solved (most of) my 1603 problems by resetting the default security access rights as given here for Win7:
http://answers.microsoft.com/en-us/windows/forum/windows_7-s...Hope this helps.
PS It's possible to copy the CD on to a hard disc and run set up from there.
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