Why aren't you using your standard WIN2K installation disk?
If you change your CMOS settings to boot from the CD first, you can install WIN2K without the hassle of Setup disks.
See if you can boot from a WIN98SE Emergency Startup Disk (ESD) and access all your CD drives. If you can, installing WIN2K should be no problem.
Could you possibly have any loose CD drive cables in your box?
If your CD drive is older than the "El Torito" standard, it probably won't be able to boot. But this is very unlikely.