This is the "inst" distribution of TeX Live (http://tug.org/texlive). Normally, you should download the "live" distribution from your nearest CTAN mirror (CTAN:systems/texlive/Images). The only reason to use "inst" is when (a) you need to burn your own physical cd, *AND* (b) you are on i386-linux, powerpc-darwin, or win32. See the TeX Live web pages and documentation for more information. Please consider joining a TeX user group (e.g., http://tug.org/join.html) to support this effort (and get the entire TeX Collection on DVD). (By the way, the .iso is not compressed because the data included is already compressed; the minor gain in space from further compression is not worth the loss in time and trouble.)