Possible cause of Windows - No Disk error during VS 2008 beta 2 setup

We have seen a few cases where running Visual Studio 2008 beta 2 setup will cause an error dialog to appear when the setup UI initializes.  The dialog has the title Windows - No Disk and has Cancel, Try Again and Continue buttons, and looks something like the following:

The systems we have seen this error on so far have had a USB card reader attached that caused one or more unmounted drive letters to appear in Windows Explorer.

It is possible to workaround this issue in one of 2 ways:

  1. Canceling VS setup, temporarily disabling or removing the USB card reader from your system and then re-running VS setup
  2. Pressing Continue one or more times (depending on how many unmounted drive letters appear on the computer) will allow setup to continue to load correctly