I am unfortunately having the same problem as you. It is an issue related to certain CD drives. I am using an Acer 8x4x32 CD-R/RW and receive that same message. EA and Westwood don't have any suggestions on their tech support sites. Apparently the problem has only occurred with some of their CDs. It could lead to a product recall... .
There are many suggestions that I have tried using in order to fix the problem, however, none of them work. Ie, copying CD to hdd to install from there, changing registry settings etc etc...
The only solution I can think of is to buy a new CD drive for your computer. Or if your computers are networked, try installing it via the network. Alternatively, you could temporarily move the CD drive from the other computer where the install worked into your computer. (just be sure to remove your CD drive) in order to make the computer access the CD when you play the game later.
Hope this helps.