this error is due to the speed of the rom not being able to keep up so that the disk can be read.
there are two ways to handle it
If you are lucky enough to have a CD Rom Burner drive you can use it to install and play the game
If not then you will need to copy files to desktop and run
here are a couple ways of doing so
1. Right-click on your desktop, select New, click Folder, and name the folder CD Copy.
2. Double-click My Computer, right-click on your cdrom and click open.
3. Press control+A to highlight everything, and then press control+V to copy everything.
4. Double-click the CD Copy folder, right-click in center of the folder and click paste.
5. Remove the cd from the cdrom drive.
6. Double-click the CD Copy folder, double-click the setup folder, and then double-click the setup file (the icon will look like a computer).
After you are finished installing, you can delete the CD Copy folder
A little more help
Re: What Does "Component transfer Error" Mean?!
----------------------------------------------------------- ---------------------
I was having that same problem and I figured out that it was the data2.cab file that was the problem. Set up a new folder on your desktop and copy your discs to that folder. Make sure that when you get to disc 2 copy data files 3 and 4 to the setup folder in your new folder. If it tells you it cannot copy a certain file then you've found the problem. Right now I'm trying to find a download of data2 so I can finish installing.
here is a link to this issue
also a search using this error at google may also pull up a few ways to do it i had a step by step but for the life of me can not find it now.
Hope this helps
April
Links to this issue
http://www.gamingforums.com/archive/index2.php?t-132481.html