If there's actually a problem with the copy of the third-party CD, you'll get a more helpful and specific error:
The location specified for the CD 'CA Business Service Insight r8.3.5 - Third Party' is invalid.
Please specify valid location for CD.
The error described above, however, is a generic one meaning that it cannot proceed with the install. The most common cause for this is a failure to connect to the database.
The first thing to check is if your TNS definition is correct - if the currently-installed Oracle client cannot perform a tnsping to the database, you'll need to correct this database configuration first.
If that works, however, be aware that the Oracle client does not always correctly configure ORACLE_HOME, PATH and TNS_ADMIN system variables - we need these to be set correctly for the installation to proceed any further. While a tnsping or sqlplus call from a command line may not need the other variables as long as the binaries are in the path, applications like BSI will. We also need the JAVA_HOME variable to be set correctly.