Corporate Yank,
If this is true, then this is the first piece of software that M$ has put copy protection on. They rely on the Licence vs keeping people from being able to copy the CD. (Except when talking about M$ Games.)
Try this software:
Golden Hawk's CDRWIN
If that does not copy the CD, my guess is either your CD is damaged or your Drive itself has a problem.
Take Care,
Richard