Can't discover Windows version on the CD/DVD you have selected. Maybe you have selected wrong directory, this CD/DVD is damaged or has unsupported modifications. Please use original Windows CD/DVD from Microsoft if possible, not every recovery CD/DVD can be transferred to a USB drive.
If you are trying to transfer Windows XP/2003 CD select the directory contents i386 (or AMD64) folder, usually its drive root, like D:. Do not select i386 (or AMD64) folder itself! Also be sure file dosnet.inf exists in the folder i386 (or AMD64).
If you are trying to transfer Windows Vista/2008/7/8 DVD select the directory contents Sources folder, usually its drive root, like D:. Do not select Sources folder itself! Also be sure file install.wim (or install.swm) exists in the Sources folder.