Don't know about that one in particular, but there is a list of known issues that Adobe has found with their products on Mac OS 10.7 Lion:
Is Adobe Creative Suite software compatible with Mac OS X Lion (v10.7)?
Adobe and Apple have worked closely together to test that Adobe® Creative Suite® 5 and CS5.5 suite editions and individual products run reliably on Intel® based systems running Mac OS X Lion (v10.7) with optimal performance and user experience. Earlier versions of Adobe Photoshop® (CS3 and CS4) software were also tested with Lion, and issues that were discovered are being documented and addressed by working closely with Apple.
See the Knowledgebase article for known issues we have discovered in our testing.
As with any new release of an operating system, there may be additional unexpected issues that arise that were not uncovered during testing. If you encounter any issues, report them on our bug report form.
The first thing you need to do is create disc images of the discs, it ensures that if you damaged a disc you can still load the installers. I do this with all major apps.
Save these images to a USB drive, somewhere safe.
The cool thing about installing from disc images is that you can, first open all the images, start the installation process going and instead of feeding it with discs it will automatically go to the next image until its finished.
So, give this a try.
I hope the installers app is not PPC? nah couldn't be.
Oddly enough my CS3 loaded just fine on Lion and as a bonus, Acrobat pro is working again. Kept on crashing in the later iterations of Snow Leopard.