Repeat steps 19 and 20 from my guide with the CD driver on your boot drive (sys:devs/dosdrivers/emergency_cd)
You might want to rename emergency_cd into CD0 first for convenience.
Now the installer works, that's great. Thank you.
I still have this problem:

Also, using action player to watch a video results in a freeze. No guru, but it doesn't respont to mouse/keyboard input at all. I can still CTRL+AMIGA+AMIGA though.
I'll check my hardware then report back.
EDIT: my cd drive is plugged in tight, No loose wires... I will try with another audio cd.
EDIT2: windows media player works perfectly by microsoft standards of perfectly... the amiga still gives that error window then quits the cd player. this is really annoying.
EDIT3: clicking on the audio CD icon in workbench launches playCD with no error. It all works but there is no sound! Clicking the playcd icon in amidock still makes the error.