I had the same problem with a games for my daughter. You can "read" it OK in Win98 but it will not install/run. I tried lots of work-arounds but no go. Ended up re installing Win95 on her computer.
I haven't tried to install it on my computer (XP-pro) yet but it should be a go-er as this supposedly has a "compatability" system where you can select the windows flavour.
MAx