Got it!
Right, for those of you who, like me, have been getting the "please insert cd" message over and over and have tried all the solutions offered here so far, I think I have an answer for you.
Use Winrar not Winzip to extract the files. Yes, it was that simple for me.
When you use winzip, all the files are extracted together in a big bundle, which is why you'll get the message "xxx file already exists, do you wish to replace it?". Winrar will extract the files into their designated subfolders.
From there, run setup with VDMsound and set digital to roland and midi to soundblaster. Then run the albion.bat file, using VDMsound again.
Problem solved (for me at least)
Hope it works for you too
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