I just saw this link in a post by kingoflego. Many thanks. I followed the steps and they do work. The game is installing from the DVD as I type this.

Here's the link to the steps to be taken: http://www.thenexusforums.com/index.php?/topic/452910-installing-skyrim-from-the-dvd/

Great minds

http://www.gamesas.com/index.php?/topic/1255286-pc-installing-skyrim-from-disk-not-steam/

Thanks for the tip!