If the program has a 16-bit installer or contains 16-bit code it will not work on any 64-bit Windows. If it was written for Windows 98 it is quite likely that it has some 16-bit components.
If it is fully 32-bit, try launching its set-up routine from the CD if the auto-run installer does not work.
If it will install but not run successfully, right click on its launch short-cut and select Properties then the Compatibility tab and set it to run in Windows 98 mode.
Otherwise, you will need a Windows 7 compatible version of the program or run it under Windows 98 or later compatible Windows version in a virtual machine.