I can imagine that there is a possibility your DVD (Not CD) was not burned correctly. You are the first to report having problems with it.
I would recommend checking the HCL to ensure that your hardware (which is not present above) is compatible.
It may be better to try and get a working install before trying to update.
The R1 DVD you have is the "latest and greatest" so there would be no need to try and update the kernel. If you can it may behoove you to go the unetbootin / USB stick install.
There are also several boot options to choose from so try the others an let us know what happens with them.