Hmmm... I definitely never saw anything like that on either Windows 7 or Windows 8. Also when I double click on the autorun icon on the disk, there is no setup folder presented. When I double clicked on on autorun, it just started the installation.
Ah, well, there's always GOG for this game... I think I've played it at least 4 times.
In my PC corner for the winter, gaming, knitting and reading.