Have you tried changing the type of install to omit the printer drivers? I remember reading about leaving out printer drives to save up to 3 gig, I just don't remember if there is an install option to omit them in the first place.
I suspect your install disk is damaged. Have you tried gently washing the install DVD with soap and water. If after cleaning your disk, it still doesn't work you should be able to get a new disk from Apple if you tell them about this error.