Error 1311 source file not found

I recently posted the following ...Trying to load new software "Microsoft Office HOME.AAA Student 2007" I receive the following message .Error 1311 source file not found E\SKU112.CAB. Verify file exist. I received the following reply...

  The usually way to overcome this problem is to copy the CD onto the hard drive. Make a special folder for it and copy all the CD over, then run "setup' from the folder.  After coping to hard drive and running setup"  I still get the same  type of message.

Any suggestions on what to do next. Also is this missing source file, missing from my computer files or the Microsoft CD. Buddee