[Beldon]

The Daemon tool is used if you have downloaded the ISO files. Since you have the discs, you should be able to just install them normally. You said for disc 2 you directed it to the path. Do you have 2 CD/DVD drives? Can't remember if Titanium was CD or DVD, so make sure you are using the correct drive. I would try running disc one then ejecting it and putting disc 2 into the same drive.

Another option would be to make an ISO of each CD/DVD from the hard copy. Then use the Daemon tool to load them.