Error Code 2
System error code 2 means "The system cannot find the file specified." This error code may also display as "ERROR_FILE_NOT_FOUND" or as the value 0x2. http://www.techsupportforum.com/forums/f10/specific-error-code-2-when-installing-windows-xp-pro-442493.html
Make sure the installation disc is clean - no dust, scratches or finger prints. If the disc is damaged it may not be able to read from the area that contains the file(s) need for installation.