There are no legal issues - Quest is free and open source, and you can pretty much do what you want with it.
The setup file quest530.exe should run with no problems from a CD.
The application files should also run with no setup required,
if the machine already has the .NET Framework v4.0 installed on it. The quest530.exe setup file checks for the presence of the framework and downloads it if necessary, so if the computer has no internet connection this bit will fail if .NET is not installed. But, you could put the standalone .NET installer on the CD from
http://www.microsoft.com/net/download/version-4 - you only need the smaller "Client Profile" download.
I'd be interested to know what "all the other inconveniences of Quest" are - all feedback helps to improve the product, so no use keeping annoyances to yourself

There is one other option for putting a game on a CD - I can convert it to an HTML + JavaScript page for you, so you could distribute a file that will work in a web browser (even if the computer itself is offline).