Hmm, It sounds like something in your initial configuration is trying to refer to the install CD (it shouldn't!). I would suspect that it is the DirectX that is doing that, as I would not expect WinDVD to be loading at that stage.
It may also be a bad setup configuration file on the install CD (either corrupted or just plain wrong).
I would uninstall WinDVD and then check whether it still needs the WinDVD CD to boot properly. If that fixes it, you could try reinstalling WinDVD, but you may just get the same result. If you do, the the installation CD may bad. Try going back to where you bought it to see if they can help, or visiting Intervideo's web page for support. (http://www.intervideo.com/jsp/Home.jsp)
If that hasn't fixed it, try uninstalling DirectX if you can, and then installing the latest version of DirectX (so you have a later version than what is on the WinDVD cd)
Reboot again and see if it still needs the WinDVD CD. If that has fixed it, reinstall WinDVD again.
You could also try copying the installation programs/files to your hard drive and running them from there - but you may end up with a similar result when you then delete the install files from your hard drive.
'Luck.
Stu
