Since the game worked before, are you sure you've done everything necessary to do before talking to her? I assume the down arrow is to back out of the scene.
According to
***ntcompatible's entry for Dracula Resurrection***You cannot use the install program, but if you copy all of your install dir of your cd into your harddisk it'll work clearly...
I'm not sure if that means the installer won't work at all or whether it means the game won't play correctly after installed unless you copy the install folder over manually.
By the way, there is no "16-bit Windows 2000." The only 16-bit Windows versions were Windows 3.1 and early versions of Windows 95. Windows 2000 is a 32-bit operating system. I assume you mean that you're using 16-bit color, which is correct for the game.