I need some help with Windows 7 disk read error!?

So I was on my Acer Aspire 5532 laptop (terrible I know) and then all of my apps froze out of nowhere. So I forced shutdown. I turn my laptop back on to discover that I have the "A Disk Read Error Occured. Press CTRL+ALT+DEL to restart" error, I inserted my Acer CD and it started up with "Windows files are loading" (or something like that). It then loaded and I saw my cursor and a Acer screen that told me to wait a few "moments." So I waited about half and hour and nothing happened so I forced shut down. I turned it back on and loaded the cd. But now instead of the Acer screen all I get is a black screen with a moveable cursor. I then placed my Windows 7 Home CD into my laptop and tried with that. I got the same message with the loading bar about Windows loading files, then I get the cool boot image with windows 7, and once again I was taken to a black screen with a moveable cursor. HOW AM I SUPPOSED TO GET THE CD TO AT LEAST WORK! PLZ HELP!