This is what i did to fix that problem, worked for me perfectly!
Vista Installation Problem - Solution!!!
Download vLite -
http://www.vlite.net/download.html
On your desktop, create a folder called "Vista"
Install the program (vLite)
Run the program
Click I Agree to any rubbish that comes up
Then, on a window entitled "dependencies", click "Install"
Once that is finished, a window will come up saying "Welcome to vLite"
Now, insert the Vista installation disc
On vLite, click on the dropdown menu and select the appropriate menu, if nothing comes up, READ THE NEXT STEP
Click on "browse" on the right
Select the CD drive and press "OK". Make sure that you dont select anything inside the CD drive, just the whole CD drive.
A new window should come up entitled "Copy Files".
Remember that folder you (should have) made on your desktop? Select that. This is where vLite will copy the ISO image.
Press OK
It should start copying Vista to that folder.
Once it is successfully copied, a window should come up in vLite entitled "Images". You should see a list of Vista operating systems.
Select "Windows Vista Ultimate", unless you want a crappy version... Press "OK"
Click on components on the left and a window should pop-up with three options on it to include.
Select all of them if you want and press OK.
In the components section, make sure EVERYTHING does not have a tick by it. unless you want Vista with nothing in it, like a cereal box without the cereal.
Click on Tweaks if you want to do anything interesting, but i recommend that you don't. Seriously.
Click Apply at the bottom of the vLite window
A window should come up entitled "Apply Method".
Read it if you want, but I'm right, so click "Just Apply the Changes".
Press OK.
Select Windows Vista Ultimate from the menu. Also click on "don't show this window again", its really annoying.
Press Continue.
It should start doing things.
Close all other programs. (Apart from the internet browser with this email in)
Click on priority and press High to make it go super speedy.
When it says "Finished", Press Next.
An interesting window will come up saying lots of things. Insert a new BLANK DVD, and where it says Media, press the little refresh button to the right of it, make sure your DVD comes up in it.
DO NOT press "finish
Click on "Make ISO", and make sure you are making it on your desktop. Call it Vista. It will make an ISO image on your desktop.
Once thats done, go to that bit that said Mode, and select the dropdown menu, this time click on "Burn Image"
Then press "Burn" and select that ISO that you just made, which (SHOULD BE) on the desktop (if you listened to me correctly). Press OK once it has been selected.
Wait a bit.
Exit and Run the DVD to install Vista!