Rebuilding Age of Empires and got error 1305 it is a little confusing, but it turned out the CD was dirty with junk. So if you get this, it is either a real problem or clean your CD!
This is an error that results from trying to read from a file and may also be due to a corrupt cab file or other corrupted file on the CD, or a file that's copied to the temp directory that hits a flaky sector. If it's not the CD-Rom or the CD drive, then move the temp location. Related information from Microsoft Technical Support: http://support.microsoft.com/kb/873281