Sorry for the resurrection, but this post is where google goes. :)
Find Setup.exe on your CD, set to run in Windows 7 Compatibility Mode (Right Click, File Properties -> Compatibility Tab)
Run as Administrator (Still on Compatibility Tab)
Double Click to run. If it runs, but nothing happens after User Access Control prompts you to allow it to modify your system, start Task Manager, and find the Process named something like Setup 32 bit installer -- should be top in your background processes.
Right-click in Task Manager and select "Go To Details". Find the running process (it will not be using any CPU).
Right Click on the Process and select "Analyze Wait Chain" -- it will be hanging, waiting on another process. Terminate that other process, and your installer will come up.
Again, sorry to resurrect an old thread, but it may save someone some time. I am just happy that I saved the CoreRules2.0 and Forgotten Realms Atlas disks from two decades ago. :)
Your advice indeed saved me a lot of headache and time. On Windows 10, I didn't have to modify the compatibility settings, but following the rest of your advice allowed it to install and run on my Windows 10 machine perfectly. It also works for the three updates. Thank you very much!