Yeeeuuup. I'm having the same issue here.
I am running windows vista,
my disks are all brand new, and they run on my gf's computer wich has Windows XP.
I've tried the manual way of copying the contents of the disks to my hardrive and installing from there.
In each instance I get about 3/4 of the way through install and I get the catostrophic failure message.
This really sucks too cuase I love Lionheads games, been playing "the movies" for a year now and never had any where near these kinds of issues. Any help would be much appreciated, and I appoligse if I dont get back to you quickly...I'm tempted to launch my comp with a pumpkin chucker.