Thanks 'kl522' for your suggestion, however, it seems that 'input/output' error could be due to many possible causes. To change the permissions on a clean downloaded distribution doesn't make sense.

In my case the problem was with my CD which explains why a file could not be read i.e. input error.

My solution was simple:

- used a new, clean, high-quality 700MB CDR
- burned at slowest speed 4x
- OPTIONAL: increased the cache and RAM buffer size

As per the forums, most errors are due to:
1. Incomplete/bad download
2. Bad burn