I would recommend going to the game developer's site. They may have an update to allow the game to work in XP.

Freedom Force would not run on my PC with SP2 installed until I ran this patch.

From the sounds of it though, it sounds like wowow.exe (or however it's written) is not working (the compatibility process for Win98 and older apps - 16bit)

Also, try dumping your temp files. It could be that the installer can't get the files to the temp folder.

Try updating the Windows Installer to 3.1 and see if that helps too....

Try cleaning the CD, fingerprints might make some sectors unreadable?


Just throwing out things that come to mind