Thanks! It was helpful that you mentioned that the "first CD" is the linuxMCE.packages.iso. I was using the correct 5.4mb .deb file and it created the icon on my desktop. However, I had to redownload the .iso files from KTorrent.
I tried burning a data disk with the .iso's to a dvd disk on my windows PC. I put them in my Kubuntu system and I was unable to drag-and-drop them to the desktop. I was forced to redownload the torrent file. I relized I did not have have the permission's to read/write/execute the files. Only the creator had access; group and other had absolutely no permissions.
I tried becoming root and even a "super user" in Konqueror and it didn't work. I just found the overall process complicated - I am a new user though.
After an hour or so of installing, the installer buckled and said "could not install lame" and just quit on me, but thats another thread. So I am goona start over. Thanks for the help!