It may be as I now I tried to make a backup of a windows 98se dsik once and had similar problems....It may have been copying procedure....
I know I have heard of ppl copying it successfully so there must be away around it....
Just get a legit copy!!!
I had same problem as mentioned above once...smudge on underside of disk...
Also I installed off of my liteon 16x48 and it runs fine...maybe he meant one of the newer liteon cd-rw drives.