For the users who mount the CDs, here's the solution:
Press Start and go to Run, type in regedit, drop down the following folders on the left side, hkey_local_machine, software, square soft inc, final fantasy viii then click on 1.00.
over to the right in the main box now, right click on datapath and select modify, change the drive letter to what ever CD drive your using followed by :, ie f: and it will work fine, and to the problem with a missing disk is solved.
Very Important Note :
If you can't find the value "Datapath" in "hkey_local_machine, software, square soft inc, final fantasy viii, 1.00", change "Datadrive" instead (in Windows Vista\Seven x32).
If it is Vista/Seven (x64), then instead of HKEY_LOCAL_MACHINE\SOFTWARE\Square Soft, Inc\FINAL FANTASY VIII\1.00
Look in :
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Square Soft, Inc\FINAL FANTASY VIII\1.00
If you can't find this one too, you will have to BURN the discs to blank CDs. It will work fine even without using the launcher nor changing anything in the registry.
Note: For future notice. Anything that is Vista/Seven 64bit (x64) after SOFTWARE add Wow6432Node between it and whatever else is there (in this case Square Soft, Inc).
One final word: If you are using Vista/7, always run the game as Administrator.