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Use Alcohol 120% to mount the image from the HD and try an install from there. During the install, when asked to insert disk2 go unmount disk1 and mount disk2 and finish. When the install is finished and you try to play the game you will need to go back and mount disk1 again to play. Do this to rule out any problem with the software. I would guess the copies you made on CD don't have the correct copy protection and therefore will not play.
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