TechNet Error 1311: Source file not found mm1.cab (290896)

CAUSE

You may receive this error if a local security policy has been set for the following:

Devices: Restrict CD-ROM access to locally logged-on user only

The security policy needs to be disabled through the policy editor or you can modify the following registry key:

HKEY_LOCAL_MACHINE\Software\Microsoft\Windows NT\CurrentVersion\WinLogon - AllocateCDRoms must = 0 (zero)

To resolve above error message, follow the instructions below.

Copy the root directory of the TechNet CD-ROM to a folder on your hard drive.
In this folder, create a subfolder called Technet. From the TechNet folder on the CD-ROM, copy the following files:
- TNXXXX.HSH
- TNXXXX.SDF
- TNXXXX.TOC
Run a typical installation from the folder on the hard drive.
Once the installation has completed, start TechNet.
When you start TechNet, the following error message may appear:
Program Files folder could not be located.
Create a specific location for the files on your hard drive. Now you can point to the location of the CD-ROM and TechNet will run without errors.

Remove the previous month of TechNet through Control Panel's Add/Remove Programs before installing a new TechNet edition.
After removing the previous month's edition, run a Typical setup and the new month edition of TechNet should install without issue.