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Install Server 2003 SBS from ISO - hangs copying files

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I've tried this twice now with no luck:

 

- existing, running Server 2003 SBS on vmware server 1.07 host

- shut down guest OS, clean shutdown

- copy VM to new host hardware running vmware server 1.08

- edit to set CD-ROM to .iso of SBS 2003 DVD (all discs in one .iso)

- start guest (create new identifier)

- Windows wants to activate due to new hardware, choose OK, and it sits at the blue background screen, never comes up

- restart, boot to ISO

- Start Windows repair install, it finds the existing installation to repair

- at modem.sys (1% into file copy), it hangs.  I have solid CD access, and no HD access

 

 

I've been watching it for 20 minutes and it's still stuck on this one file.  Is this a problem with the ISO or the procedure?

 

 

I've tried this 2 times now and it seems to hang up at the same point.  PLease help!!!

 

 


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