hi lastillusion,
while doing some research on the internet, I have come across a similar thread already
discussed here on linuxquestions. Unfortunately, this doesnt help much, because it doesnt mention a solution. However, there is a mention that the cd works on a different drive. The fact that your cd works on another computer suggests a similar thing.
To verify this, you could use a different cd-drive, if you are willing to put in the effort. However, this wouldnt solve a thing (without permanently switching to a different drive, which you sure dont want to and should not do).
There is a slim chance that burning the cd with a different tool or writer (dont know which) might help. (Dont do this, if you havent tried the following solution.)
As to what is causing the error, I have found a webpage that mentions that this error only occurred when using a 2.6.(something, dont remember) kernel. Since both the newest suse live eval and knoppix use a 2.6 kernel, this might just be the problem.
I dont know if they still include a 2.4 kernel (due to the lack of space on a CD they might not). If they do, you could try using that and see if it works then.
Sorry that I couldnt give you any more specific instructions.
Good luck,
- drowstar