There are a few causes and all the times I had this error it was hardware. One time it was an old CD, then an old CD drive and then another time bad ram and overheated CPU.
Not one time was it a missing file on the CD.
Example at http://www.bleepingcomputer.com/forums/t/81736/error-installing-windows/
Bob
Hello,
I'm trying to escape and endless loop of a failed Windows install. Details below, the part at the bottom is the part I am specifically having trouble with.
//
I'm getting this error saying that "SETUPORG.exe does not exist in the i386 folder on UXPCD". There's a RETRY and SKIP options and technically, i will choose the SKIP button. The installation will finish but when the computer reboots itself, it won't continue saying that there's a missing file.
C:\WINDOWS\system32\presetup.cmd - FILE NOT FOUND!
C:\WINDOWS\system32\setupORG.exe - FILE NOT FOUND!
(setupORG.exe - > Original windows Setup.exe)
POSSIBLE CAUSE:
1. "Presetup.cmd" not exist in the i386 folder on UXPCD
"setupORG.exe" not exist in the i386 folder on UXPCD
2. Check your "Txtsetup.sif" in the i386 folder on UXPCD
---Txtsetup.sif: -------------------------------------
[SourceDisksFiles]
setupORG.exe = 1,,,,,,,2,0,0; must exist
presetup.cmd = 1,,,,,,,2,0,0; must exist
--------------------------------------------------------
SETUP ABORT
when i press OK, the system will reboot and will go on a loop just like this. I don't know how to solve this. I've went through various forums and it seems that most of them haven't found the answers yet. I thought you can help me with this. I can't use my laptop now even if i run it in safe mode.

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