OK I had this problem when I first tried to install the game and it locked just short of a complete install. Looked as though it had but gave the same message as you have plus trying to reinstall told me I had to uninstall first.
The answer to this was tucked away in Activisions help board. (how to install no help on uninstall)
to uninstall delete the activision folder and go to the control panel, click on the add /remove programs and remove the wizards and warriors entry, This should remove it from the registry without all that dam registry editing.
Set your computer to 640 x 480 (think I left it on high colur 16 biy) exit all TSR`s (those in little box on your right of windows task bar) especially any virus checker now reinstall and all should be OK. You can reset your computer back to its original settings. You will probaly find to run the game properly you will need to set the graphics to software mode within the game options and to avoid long delays in the game switch off the virus checker before playing.
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