@ipgross,
The Windows Installer error 1311 would indicate that installation media is either corrupt or is having read problems at some location.
Since you are working from a DVD, the best course would be to copy the entire content of the DVD into the Windows VM partition, and then attempt to run the installation from the HDD rather than the DVD.
If still having error 1311 problems, the DVD was corrupt and you'll need to obtain a new copy; or the ISO image and work from that.
Of course be aware that Esri "support" for ArcGIS 10.1 on Windows 8 came with the service pack 1 release, so you'll want to install that as well. Not that it really matters since Esri does not "support" ArcGIS for Desktop running under any OSX VM.
Stuart