Try this:
Right-click the installer file on the game CD (it's probably called Setup or something similar)
After right-clicking, Choose Properties
Choose the Compatibility tab
Change to Compatibility mode for Windows 98/ME
Now install the game by directly clicking on the tweaked Setup file on the game CD.
EDIT --
I see Inferno has already laid this out in her
***Time Machine Setup***. She also suggests disabling visual themes and advanced text services if you see them on the compatibility tab.