Windows 7 Reinstalling Dell Studio XPS 8000 Error

I'm trying to restore my pc back like when I first bought it. I put in the cd for reinstalling Dell Studio XPS 8000 Computer software. It says on the cd that it is installed on my pc but I can't find it. When it's Computing Space Requirements, an error pops up and says, "Error 1606. Could not access network location %APPDATA%\." I pressed retry and it still doesn't work. What should I do? Please help!