Vista - Windows can not install needed files are missing.

I reformatted the drive and no luck, just got back from purchasing a new dvd rom drive installed it and still getting the same error. Thought wtf guess I will try win 7 and same bloody thing.

Would prefer to figure out how to use the over priced disk I purchased, worked once I don't see why the problems now.

I have had similar issues with Windows install discs.
Presume your hard drive is not defective.
Either the Windows install disc has become unreadable (this happens with CDs
or DVDs) or your optical reader is defective.
Options: clean the disc and see if it becomes readable.
Borrow someone's installation disc (has to be same version) and use your
install key.
If your hard drive is formatted you may be able to copy the installation
files to the hard drive and install from there. That also requires that you
understand some basic DOS commands that you can use by opting to go to the
command line repair option rather than the auto modes when you boot from the
install disc. This last option has worked several times for me.