Problem with installation

@Shn00zle , it shouldn't matter that you are installing from disk. I think the problem is occurring because the game is looking for the "latest patch" information from a site which may no longer exist. So, here's what I suggest doing. Google search for copies of the Sims 2 patches (there are sites that have these archived) and try applying the patches before you install the particular EP/SP. 

There is another way to install the game if this doesn't work. Let me know if this works and if it doesn't I'll give you the steps to take for installing the game.