pinworm,
It's a Win XP problem.
I recently moved up from a PII Win-98 to a Sony Vaio P IV workstation with Windows HomeXP. I have the same problem with BGII's install, and BGI won't install at all! BGII will only perform a 'Recommended' size install. It crashes if I try to perform a full install, and I have the same symptoms that you have experienced. At least it still runs on the partial install. BGI fails on loading several files, but allows me to continue the install. Then, it fails to initailize whenever I try to start the game.
Shortly after this change change of systems I picked up a back copy of PC orld with a lead article about the software incompatabilities in XP,...wouldn't you know.
I've been watching MicroSoft for news about fixes to these problems, but haven't seen anything so far. I guess that the 'bug factory' is still busy fixing the security issues. I have three of those fixes now and still have trouble with my firewall too!
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