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I loaded my SW2007 & CW2007 from the DVD with no issues. I'm using an HP Workstation with Windows XP(32 bit). Can you load the CW2007 from the CDs?
I have a new Dell Precision 690 x64 bit machine and it can read everything else except the cosmos/solidworks 2007 DVD. I tried the cosmos DVD on my current x32 bit machine and it could read the DVD content fine. It may be a hardware issue since I have tried uploaded the latest driver for the DVD drive and the problem still persists.