Do this on another pc if you can to test it out.
This is Windows complaining that it can't access the file ntkrnlmp.exe from the install CD. This could be caused by several things. To check if it's the CD or the CDROM drive, copy the folder i386 to a hard drive. If you can copy it without any problems then it's not the CD itself. It could be the CDROM in the computer, or bad RAM or a bad motherboard. To test the motherboard and RAM, you can use Memtest86 which is a free memory tester. If you get errors running this test utility, then you either need a new motherboard or new RAM. It may also be possible that you BIOS settings are not correct, or that you have overclocked the motherboard too much. Reset the BIOS to defaults and run the tests again, if they still fail, you most probably have faulty hardware.