The file you download doesn't care what you do with it. Its just a file. Make sure the file will fit on your disc. A dvd will have plenty of room to spare. Also make sure you are burning as a data disc.
I would recommend putting your cd key in a text file on the disc, that way if you have the disc you have the key and you can just copy/paste. And make at least 2 copies, incase one disc decides to die in a year or so.
[edit] It seems the problem is installing from the disc and not burning? I have no idea what could caues that, other than a bad burn. Try copying the file to your hdd first, then run the installer.
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