OS: Ubuntu 7.10 x86.
Unfortunately I still got the problem.
I downloaded the CentOS 5.1 x86 DVD image, it passed the md5sum/sha1sum tests, I burned it with nerolinux with verification, I copied all the contents of the burned DVD to a hard disk directory successfuly, it passed the media test during installation and then I got the screenshot attached error message.
vmware version: 6.03 with IDE virtual hard disk.