This error is usually the result of an unsuccessful download. Sometimes an installer package appears to have downloaded successfully, because no error message was given about the download. However, the entire file is not downloaded successfully. When you run the exe file, it has enough information available to start running, but it will only get far enough to provide the "Failure to read..." error message. Since it does not have the complete file content, it will not be able to read the setup initialization file.
So you need to try downloading Sitefinity once again. Do let us know of any installation errors.
All the best,
the Telerik team