I am assuming you are up on SP-2 and applied all your Windows updates?
Do I understand that you copied the game cd's to your HD and ran it from there, and it still didn't work? I'm assuming you examined cd's for smudges and cleaning needed.
It's a long shot, but you could try installing from safe mode (may not run from that mode).
If you had another computer with wow, or a buddy you could hook up with, you could copy the wow program folder from one machine to the other.
Other thoughts include downloading the trial or grabbing a $1 trial dvd from bestbuy when they are open (doesn't the demo unlock if you put in your real key?).
Anyway, other than reinstalling windows again and maybe doing the minimum before installing (sp-2 only), you are stuck doing Google searches for the exact error message. Sorry I don't have a definitive fix, that's a tough one.