Hi Hadi,
I think it could be one of these things:
* Boot device priority: you should check that CDRom is the first one (it isnt that probable because you have already booted from CD at least one)
* CD reader broken: you should try with another CD, to see if it works
* CD broken: you should try in another computer to see if it works
AFAIK should be one of those things, beacause if Windows have any error reading the disk format, it should be pointed in the install process, I mean, you don't even have to have a disk connected to '''try''' to install it
Regarding the VM software in Linux (desktop), you have VirtualBox and VMWare. For most things that I do, I prefer VirtualBox, because its in the repositories and much faster to install:
yum install VirtualBox
Bye,
Andres