I've had more than one (I returned it once already) do this...I've been able to trick my Disc 1 to work everyonce in a while by alternating with other CDs (like Disc 2 works fine), but where it worked has occured just *twice*, once for installation, and once last night where I played for eight hours as not to lose the CD's sweet spot, so to speak, but alas, it did not work when I tried a second time this morning and any of the dozens upon dozens since. (Of course I've updated firmware, shut off background programs through msconfig, and even gotten things like sd4hide, but with no luck.)
I think this is an XP and copyprotecting error. People should do a study to see how much money companies actually lose from piracy, I image people who steal the game, probably wouldn't bought the game anyway. Its probably much-to-ado about nothing concerding the technology costs *might* out-weigh the loss of sales. This is not the issue though, I just want my game to work consistently...any ideas?!