1603 could be due to a host of possible cause but it may be good to start with the folloiwng.
1. Please ensure that you have full permissions to your machine and to the location where the deployment exists while you are installing from the deployment
2. Ensure that the installing user has Local Administrative group membership and that no restrictions are imposed to required users account.
Note: Local Administrative privileges are required for installation.
Other points to note:
- Do not relocate the My Documents folder off of the Local System and do not use Roaming Profiles.
- Ensure simple and short pathname used on source and target machine.
- Avoid bad CD\DVD Drive or Drivers. Try copying the contents of the CD\DVD to a single folder on the HDD and re-try the setup.
- Try to insatll DirectX manually from the DVD or downloaded content (eg. <Media>\3rdParty\DirectX\DXSETUP.exe)
Please let me know if that works.