What happens if you put a non-software CD or DVD (try a music CD or a commercial movie DVD if you have any) in the external drive (E:)?
If nothing happens, double-click on the drive; what happens then?
From your description, it sounds as if you have a small "installer" application already present on your hard drive, and when you run that, it asks that you put a cd in your D: drive. If that assumption is correct, and especially if you can successfully open a music or movie disk in the E: drive, the likely issue is that the installer is hard coded to look at the D: drive.
The following may help:
- Open Disk Management (click Start, type diskmgmt.msc in the Search box, and press Enter)
- In the bottom pane of the Disk Management applet, right-click on the current D: drive and click "Change Drive Letter and Paths"
- In the next box, click "Change"
- Use the drop-down list to assign a new letter, for example F: and then OK your way out.
- Now right-click on the current E: drive and repeat steps 2-4 to change the drive letter to D: and OK your way out.
Reboot the computer and check to see that the new drive letters are assigned to the correct devices. Then try to install the software.