ms dvd kit vista install 80070241 error

I have this same glorious error, but with a twist. I am using a MS DVD Kit to install on a Inspiron 6000 (only 5 mos old) . I am using a Virtual PC with 700MB RAm allocated and 16G dynamic disk. I get this error at 1-3% of file copy every time. Most of posts involving this error seem to be due to bad downloads/dvd burns but this is not. I have used this same disk to install on a different PC using a Virtual PC with same settings and had no problem with file copy. So if its not bad download/media, it runs under Virtual PC, its not IDE vs SATA, and my Inspiron cks out fine during Vista readiness test, than what is it? I have yet to see anyone really address what the actual problem is, only finding the right work around. Any advice would be appreciated