Actually, the corrupted file is the longest file on CD1 and it's probably _setup\Data1.cab. The file displayed in error message is inside the cab. Your CD1 is probably scratched or your CD/DVD drive has problems reading it. Your best option is to try to read the CD on another drive. Or try to copy all the files into an empty folder on your harddrive and install from there (but most probably you'll get a read error while copying). Otherwise just get a new copy of CD1 somewhere...It's possible to fix the corrupted file but it's long and requires another person with a good copy (you must use some tool to read the file even with errors, and then the other person must use some patch making program like Zidrav to make a patch which needs to be applied to the corrupted file).
-Mok