I was having the same problem, so i had prepared a partition of 1GB to install win98 to run the game.
But then I tried once more to install the game. When I put browse to select another directory to install i got the error 'unable to find the file. please reboot and try again'. Then I got the idea of installing on the smaller partition of 1GB and ... no bad message.
I copied my save games to this partition and set the save game directory. Then I ran the game and the save games now loaded.
I hope it helps.
