I did a install with a partially broken disc2. Whenever there was a error, anaconda correctly detected it and displayed a dialog, which said there was a media error (or the file was missing). I was able to install a few RPMs by retrying a few times, but a few just couldn't be installed. I was able to continue this by ejecting, placing disc1 in the drive, waiting for it to skip a few rpms, ejecting it on the fly and putting disc2 back in (the door wasn't locked, fortunately). At one point I let it try accessing the disc while the tray was open and that confused the kernel enough that it decided that my cd was completely empty, making it impossible to ignore further packages. Oh well :) Ideally, I think it should have a Abort/Ignore Package/Retry dialog instead of just the "Ok" it now has (which means Retry, really).
*** This bug has been marked as a duplicate of 50841 ***