This is how you force Steam to install from the DVD......
Using Steam launch options to install retail games from disc
*Log in to Steam and click on Library.
*Right-click on the game, select Delete local content, and confirm.
Insert the first disc into your computer.
Close Steam (Steam > Exit).
Press Windows Key + R to open Run
In the Run window type:
"C:\Program Files\Steam\Steam.exe" -install E:
Replace E: with the CD/DVD drive you are installing from if is not correct.
Replace C:\Program Files\Steam if your Steam installation is not in the default location.
Press OK. Steam will launch and ask you to sign in if you do not have your password saved. Your installation should continue from the disc.
*(The first two lines are for those reinstalling a game, ignore those.)
For me that line would be "F:\Steam\Steam.exe" -install D:
(note the space before -install, you must have that space there or it won't work)