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Bad first impressions, Warhorse Studios!!
Steam should have the option to "download from disc", but that can only be accessed from the command line. Exit the steam client, then run the steam cliemt from the command prompt with an option like "-install E:" (if "E" is your DVD drive).
It's been ages since I've used that, and I've only done it once. Why? Because it's completely unnecessary. Just forget about the discs.