Still working with tech to try to solve this problem for myself, here is what has been suggested and perhaps it will help others with install problems. Frustrating;(
   Email 1: 
 - Click on the Windows Start button and choose Run. 
 - Type MSCONFIG and click OK. 
 - Please select " Selective Startup "
 - Please remove the check marks next to Process Config.Sys, Process
 Autoexec.bat and Load Startup Group Items. 
 After making these changes, you will need to click OK and then restart the
 computer for these changes to take effect. 
 If this does not resolve the problem, please go back into Msconfig and
 re-check those boxes and then select Normal Startup, clicking OK and
 restarting the computer to go back to your original startup. 
 Email 2: 
 I seem to think it might be related to the InstallShield that is suppose to
 initialize when you click on the INSTALL button from the Launcher. Could you
 attempt to reinstall the .2183 Detonator XP Driver for your TNT2? This uses
 the same InstallShield version and I am curious to see if the same problem
 occurs. 
 Email 3: 
 Ok, let's continue on. The following link may resolve this issue, you'll
 need to download a file and install it onto your machine:  
Http://www.microsoft.com/com/dcom/dcom98/download.asp) 
 Basically, the above update helps out with various InstallShield issues and
 at this point, it's worth a shot.  
 I also noticed that your monitor is setup as a Plug and Play Monitor - You
 might want to look into setting this up with the correct .INF driver for
 your model type. Contact your computer manufacturer for further assistance
 or click on the following link which leads to our website and has step by
 step instructions on how to do this:  
http://support.lucasarts.com/trg/tgd.asp?id=2139&g=109&s=12) 
 We'd like to verify if any devices on your system are sharing the same IRQ
 (Interrupt Request) which might help us further diagnose the problem for
 you. In order to do this, the following information will assist you in
 passing this information on to us: 
 Click on the Windows Start Menu and choose Run
 In the Open Field, please type in MSINFO32 and click on OK
 Next, click on the + next to Hardware Resources under System Summary on the
 left-hand side within the MSINFO32 Utility
 Select the IRQ listing which should then show you a list of all available
 IRQ's on your system in the Window on the right-hand side. 
 Email 4: 
 Thanks for the info. Try deleting all files in your system's temp folder
 (the default location of the active temp directory on Windows 95/98 systems
 is "c:\windows\temp"), and then try reinstalling. First however, you will
 need to make sure that your system is set up to display system files, which
 are often specified as hidden files. Open the "My Computer" window, select
 View > Options on the menu bar, and on the VIEW tab make sure that the "Show
 all files" option is selected. 
 If deleting all files in your system's temp folder ("c:\windows\temp") does
 not resolve the problem, then it may be due to your system not currently
 having a specified, active TEMP directory. 
 To correct the problem, please try the following:
 Go into your AUTOEXEC.BAT file (located in the root directory of your C:
 drive) and add the following line:  
 SET TEMP=C:\TEMP1 
 If you are unsure how to edit a file, please follow these instructions: 
 The program that you will need to use is called Notepad (it is a text
 editor). While in Windows 95/98, you can get to Notepad by clicking on
 PROGRAMS (off of the start menu) and go to ACCESSORIES, or use the RUN
 command in the Start Menu, and type "notepad" there. 
 Once you are in Notepad, you would want to go up to the FILE command and
 choose "OPEN." From there, it may list the FILE TYPE as being *.TXT. If it
 does, you will need to click on it to change it to ALL FILES. The file that
 you will need to open is called the AUTOEXEC.BAT It is located in the root
 directory of your C: drive (which means that you will find it at "c:\"). 
 Once you have this file open, you can then add the SET TEMP line above. Once
 you have completed this process you will need to go up to the FILE command
 and choose "SAVE" then "EXIT." 
 You will then need to create a new folder on your C drive called TEMP1. The
 easiest way to do this would be to open up the EXPLORER, click on the C:
 drive, and then go to the FILE command at the top of the screen, and select
 NEW > FOLDER. 
 You will see a folder appear on the right side of your screen. Name this
 folder "TEMP1" and hit ENTER. 
 You will then need to restart your machine from the Windows Shut Down
 screen. 
 After you have restarted, try installing the game once again. Please let me
 know If you continue to encounter any problems. 
 If everything goes okay, you may want to then remove the above SET TEMP line
 from your autoexec.bat file, and delete the TEMP1 directory from your hard
 drive.  
 Please also delete the Program Files\Common Files\InstallShield\Engine
 folder and then rerun the setup. Remember, only delete the Engine Folder. 
 Make sure that you are using the latest version of the InstallShield engine.
 To install the latest engine, see Knowledge Base article Q105097, INFO:
 Install the Latest Version of Ikernel.exe.  
http://support.installshield.com/kb/view.asppcode=CLASS630PEE&articleid=Q104985)