Re: WTH is this: please insert the original disc instead of a backup(1000)?
I had the exact same problem with my CE DVD. Just remove any virtual drives that you have going then exit Daemon Tools and you will be right to go.
My DVD rom also makes some weird clicking noises when I first put the DVD in as well.
Core 2 E6700
2 Gig Ram
2 x Leadtek 8800GTX SLI