Besides - shouldn't it actually give a "file unreadable" error message if that was the problem?
Unfortunately, CDs don't always indicate that there was an error. Making an ISO may simply replicate the error, with no questions asked. Since you have the same error, on two systems, I am inclined to believe that the CD is bad, somehow. Perhaps, somebody who has an MCP2 CD can create a MD5 signature for it, and you can compare that to what you get.
Your systems seem to be pretty standard, although there was a time when the SIS chipset was a problem, but I think that problem was fixed by the time that MCP2 was created. The only questionable device, might be the PCTel modem. It likely won't work, if it is a "winmodem", but it won't stop an install.
Three things come to mind, that can cause problems, although having two, different, systems, with the same symptoms, really doesn't point in this direction:
1) OS/2 will find bad memory, almost as fast as the heavy duty memory test programs will. I have seen windows (3.1, at the time), run for days, with no problems, but OS/2 (warp 3) wouldn't even boot. Once the bad memory was replaced, there were no more problems.
2) There was a time, long ago, when the "Turbo" switch was common, that it was recommended to install OS/2 at the slow speed. If your systems are overclocked, it would be a good idea to put them back to normal.
3) Check the jumpers on your disk, and CD drives, to be sure that Master and Slave are correct. Windows doesn't care, and OS/2, with the later Dani IDE driver, will work, if the jumpers are wrong, but the IBM IDE driver, which will be on the MCP2 CD, will choke on that sort of thing.