Upgrade fail, Insert disk 1

Hi All,
Having some trouble applying a upgrade. The upgrade askes to insert disk 1, the for the previous MSI. I'm not sure why. I believe the previously cached installation is ok ie

MSI (s) (70:70): Using cached product context: machine assigned for product: B8EA328F04EC4B94BBB23E5EB98DD2FB

The problem file is PracSoft.exe, basically the only file to be upgraded and is versioned.

Any ideas?

Here is a snippet of the log

MSI (s) (70:70): Executing op: FileCopy(SourceName=Pracsoft.chm,SourceCabKey=Pracsoft.chm,DestName=Pracsoft.chm,Attributes=16384,FileSize=5925764,PerTick=32768,,VerifyMedia=1,,,,,CheckCRC=0,,,InstallMode=126091264,HashOptions=0,HashPart1=1385773654,HashPa
rt2=-882894397,HashPart3=1935333522,HashPart4=-1043300346,)
MSI (s) (70:70): File: C:\Program Files\Health Communication Network\PracSoft\Pracsoft.chm; Won't Overwrite; No patch; Existing file is unversioned and unmodified - hash matches source file
MSI (s) (70:70): Executing op: FileCopy(SourceName=PracSoft.exe,SourceCabKey=PracSoft.exe,DestName=PracSoft.exe,Attributes=16384,FileSize=2842624,PerTick=32768,,VerifyMedia=1,,,,,CheckCRC=0,Version=3.0.0.31,Language=1033,InstallMode=126091264,,,,,,)
MSI (s) (70:70): File: C:\Program Files\Health Communication Network\PracSoft\PracSoft.exe; Overwrite; No patch; Existing file is a lower version
MSI (s) (70:70): Source for file 'PracSoft.exe' is compressed
InstallFiles: File: PracSoft.exe, Directory: C:\Program Files\Health Communication Network\PracSoft\, Size: 2842624
MSI (s) (70:70): Re-applying security from existing file.
MSI (s) (70:70): Verifying accessibility of file: PracSoft.exe
MSI (s) (70:70): Note: 1: 2203 2: D:\PracSoft\PracSoft.msi 3: -2147287037
MSI (s) (70:70): Source is incorrect. Unable to open or validate MSI package D:\PracSoft\PracSoft.msi.
MSI (s) (70:70): Note: 1: 2203 2: D:\PracSoft\PracSoft.msi 3: -2147287037
MSI (s) (70:70): Source is incorrect. Unable to open or validate MSI package D:\PracSoft\PracSoft.msi.

phila

phila