I have the same issue with a brand new Dell. My cd is not bad - it works perfectly on my other computer, but I get the same error message after it scans "for USB/firewire devices" and allows "slow USB-devices some more time to register". When I ran the debug it said it was "starting Intermediate shell stage 1 as requested by "debug", then it immediately gave the error message.
I wonder where the program is looking for the filesystem and whether it could have anything to do with the cd drive being SATA and not IDE? (None of the cheatcodes I found here, or in the wiki, or googling, etc. worked for me)