"Setup is starting", comes after you have put in the basic details of your location and keyboard. Until then, very little has been done, or used from the DVD. It does, at this early stage, seem that it is having problems reading your HD set up, or possibly some corrupted files on the main portion of the DVD installation media. The next window will offer a customised or default install.
One suggestion, to get you up and running, is that you create, if not already, a small partition on your hard disk. It need only be about 10 gbs. In that partition, create a folder - call it setup or similar. Try and copy the entire contents of your DVD to that folder and then run setup from there.