Can you try this, goto my computer and open up the drive with the game in it, not autorun or play.
Find the setup.exe and right click it, and run it in compatibility mode with Windows XP.
And then try installing.
Failling that, goto Start > Control Panel > User Accounts > *your account if applicable* > turn of UAC at bottom of page.
Restart the PC and try installing again
UAC, is a pain when it stops older games from writing to the program files folders.