Edit4:
I'm now manually copying the disc contents across the network drive, which is going WAY faster than Steam was using the network. I will then map the folder to a drive letter, and then try to install. Yay for disk fragmentation!!!
If this still takes three hours to install from the local hard drive...
Edit2:
If you have multiple computers on a network, there's a workaround to this. Share a DVD drive on another computer, one that can read the Skyrim disc. Right click the share on the computer you want to install on, and choose to map it to a drive letter. Then do
steam -install z: (or whatever letter you chose)
This is working for me. It's cumbersome and I wasted twenty minutes doing it, but it worked.
Edit3:
What? It says it's going to take THREE HOURS to install? That doesn't make sense. I know 100 megabit ethernet is not that slow. I wonder if the other drive is having issues reading the disc too but can still read it slowly.
Same thing, either they released a bunch of corrupt discs or they tried some lame anti-piracy thing (which wouldn't make sense since it's Steam anyway) that causes it to not read.
I ordered two copies, one as a gift, and BOTH discs cannot be read. I'll try another computer. Ridiculous...
Edit:
It works in another drive in another computer. I'm going to try installing over a network share. They did something non-standard with the disc it seems. This computer cannot read EITHER disc with:
HL-DT-ST DVDRAM GSA-H40N