First check to see if the installation disc is scratched or has thumbprints on it. Clean with a lint free cloth (not in a circular motion) from centre hole to edges. Delete any evidence of the printer in Control Panel>Printers & faxes. Do not plug the printer into the computer. Try the installation again.
If it fails again. Insert the disc and exit the set up programme. Delete any evidence of the printer again. Make a temporary folder on the C drive e.g. C:\Temp\Lexmark. Copy the entire contents of the set up disk to this temp folder. In windows explorer navigate to the file within the folder called setup.exe and double click it. Follow the setup again.
Post back with the result!