Hi,

I had the same problem.
What I realised is that I had installed IIS after installing VS.NET.
So I used "ADD/Remove Programs" to uninstall both IIS and VS.NET.
I then installed IIS first and then proceeded with the VS.NET installation.
It worked fine after that.
When you put the first disk in, it will prompt you to install the Prerequisetes. If I'm not mistaken, these were on the second disk.
Be sure to install the Prerequisetes first.
Best of luck.