Error 1310 when installing VS from CD/DVD

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There have been many problems recently with installation from the media that was handed out at the PDC and in various other places. One problem is caused by the disk label being burned incorrectly (VS install will fail). A second issue occurs during the installation of VSS (VSS install will fail). An error like this is shown:

"Error 1310.Error Writing to file: Microsoft.VisualStudio.SourceSafe.Interop.dll. Verify that you have access to that directory"

This happens when, for some reason, Windows Installer cannot write to the location where it tries to extract this file from its cab. Currently the best known work around for this issue, as well as disk label issue, is to copy the contents of the CD/DVD to the local hard disk and install directly from there.