Firstly Welcome to IW Strom [img]graemlins/happywave.gif[/img]
Now, in my old setup I had hard-drives C: and D: and did a complete instal of BG2 from my CD Rom E:
I also had this problem but was allowed to select where the CD was after the first one had finished instaling files. I understand that you've probably tried everything you could think of but see (after you put the next disk in the CD Rom) if you can change the directory of the drive it is searching in. You should be able to do that by, or editing the box from D: to E: Although I haven't tried actually highlighting it and changing it from D: to E: give it a try if all else fails.
Best of luck with it!
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