Hmm normally you should be able to install SilverChaos without Daemon tool or burning somethin. (well at least I was^^)
When I tried to install SilverChaos I got that annoying message too, about inserting the CD. In my case the solution was
A) to choose the biggest installation option (the one which takes most
MB) and
B) not to switch the system language to japanese until you have installed
the game --> switch it after you have installed it.
Btw, theres a website concerning
BL-Games which explains those ways you mentioned with burning etc. Here's the link
http://blgames.ukepile.com/install/installation.php
Hope that is helpful