I was having the same mysterious message after I put in my 2nd disk. It would stall at FuShe Pass\client.zip. After trying 4 seperate times with two different [legal] copies of the game, the only thing that let me get past this is by waiting for the CD/DVD-ROM drive to finish spooling up the disc before you click on the Retry button [the window that asks for the 2nd disc].
Just finishing up my install now and it seems to be working.
By no means would I think it would fix everyone's problem but it seemed to work for me.