
I've Read your post as i'm a curious monkey...and my first thought that came to mind is this...Major Issue!
First things first. I'm going to know what OS are you running...i.e. what version of Vista. 32bits, 64bits, you can find that info in the control panel under the systems tab.
Secondly, you wrote that when you download a file or execute a file from the CD drive your system can not install from that drive and just goes to freeze up on install. If that's the case, i suspect a viral or malware issue on the computer and you'd enjoy performing a thorough virus scan using a up to date virus detection software. All sectors of the PC as to be scanned, disk boot sectors, system memory also, and all partitions.
If no viruses are found nowhere, and or quarantined, and problems persist, you would have to perform a Vista recovery at that point, your pc would go back to original state.
At this point, your second laptop is no savy saviour and is useless to recover a Vista OS.
hope this helps you, and good luck finding your infectious virus and getting rid of it...(that's only my suspicion...)
Simon
